Author Topic: LVNTA - Liberty Ventures  (Read 76111 times)

mbrock77

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Re: LVNTA - Liberty Ventures
« Reply #190 on: June 12, 2018, 05:41:44 PM »
Could someone explain what these are/what the point of them is?


Broeb22

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scorpioncapital

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Re: LVNTA - Liberty Ventures
« Reply #192 on: June 13, 2018, 12:15:45 AM »
I take it, unlike a regular loan where you must pay it off in cash, with these they can pay them off in Charter stock, so they can take advantage of if they think it's overvalued, or perhaps there may be a tax benefit on in-kind dispositions?


Liberty

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Re: LVNTA - Liberty Ventures
« Reply #193 on: June 13, 2018, 05:31:15 AM »
It's a way to be tax efficient, I think. Doubt they think CHTR is overvalued, having just bought back 12% of the shares last year at higher prices.
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chrispy

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Re: LVNTA - Liberty Ventures
« Reply #194 on: June 13, 2018, 06:41:16 AM »
So they must be thinking charter is less undervalued than their tax rate?

Liberty

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Re: LVNTA - Liberty Ventures
« Reply #195 on: June 13, 2018, 06:43:36 AM »
So they must be thinking charter is less undervalued than their tax rate?

It depends when the debentures are exchanged. It's not now, and they probably don't expect CHTR stock to stay this low forever.
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scorpioncapital

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Re: LVNTA - Liberty Ventures
« Reply #196 on: June 13, 2018, 11:13:53 PM »
https://seekingalpha.com/pr/17191762-gci-liberty-inc-prices-private-offering-415-million-1_75-percent-exchangeable-senior

28 year term to be exact. I think there's a good chance there will be period of over and undervaluation over such a long term :)

dwy000

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Re: LVNTA - Liberty Ventures
« Reply #197 on: June 14, 2018, 12:42:15 PM »
Am I reading it wrong or is this basically just moving the cash back to Qurate while keeping the tax benefits?  The use of cash is to pay the indemnity that GCI has given to Qurate for the same Charter convertible securities. 

Super confusing.