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Charter, Arris Ink Warrant Agreement - Broadcasting & Cable

Charter, Arris Ink Warrant Agreement

Charter can purchase up to 6 million shares of Arris based on product sales
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Charter Communications has agreed to purchase up to 6 million shares of Arris over the next two years based on certain product sales, according to a new warrant agreement that tightens ties between the MSO and one of its key vendors.

Per the agreement, detailed in this 8-K filing, Charter may purchase up to 6 million of Arris ordinary shares. The warrants, which expire on Sept. 30, 2023, are set to vest in three tranches through 2018, based on the amount of goods and services Charter purchases from Arris.

A set percentage of the purchases tied to the warrant agreement must be for goods and services included in Arris’ Network & Cloud segment for 2016, 2017 and 2018, the filing said.

Arris, which announced a similar warrants agreement with Comcast earlier this year (for up to 8 million shares), noted that if Charter fully maximized its share allotment under the agreement, its percentage of shares in Arris would be less than 5%.

For the full story go to Multichannel.com.

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