Charter Closes $1.1 Billion Senior Unsecured Notes

Rhea-AI Summary

On February 13, 2023, Charter Communications (NASDAQ: CHTR) announced the closing of $1.1 billion in senior unsecured notes due in 2031. The notes carry an interest rate of 7.375% per annum and were issued at 100% of their principal amount. Sold to qualified institutional buyers, these notes were placed under Rule 144A and Regulation S exemptions, meaning they are not registered under the Securities Act and may not be sold in the U.S. unless registered. This financing initiative aims to bolster Charter's financial structure as it serves over 32 million customers through its Spectrum brand.

Positive

• Successfully closed $1.1 billion in senior unsecured notes, enhancing liquidity.
• Interest rate of 7.375% is competitive for long-term debt.

Negative

• Notes not registered under the Securities Act, restricting their sale in the U.S.

STAMFORD, Conn., Feb. 13, 2023 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., have closed on $1.1 billion in aggregate principal amount of senior unsecured notes due 2031 (the "Notes"). The Notes bear interest at a rate of 7.375% per annum and were issued at a price of 100.000% of the aggregate principal amount.

The Notes were sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S. The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This news release is neither an offer to sell nor a solicitation of an offer to buy the Notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.

About Charter 
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet^®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business^® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach^® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.

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SOURCE Charter Communications, Inc.

FAQ

What financial announcement did Charter Communications make on February 13, 2023?

Charter Communications announced the closing of $1.1 billion in senior unsecured notes due in 2031.

What is the interest rate on Charter's recently closed notes?

The notes have an interest rate of 7.375% per annum.

Why are Charter's notes not registered under the Securities Act?

The notes were sold under exemptions like Rule 144A and Regulation S, which allows them to be sold to qualified institutional buyers without registration.

What does the issuance of $1.1 billion in notes mean for CHTR shareholders?

The issuance aims to strengthen Charter's financial position, potentially benefiting CHTR shareholders in the long run.