Charter Closes $1.5 Billion Senior Unsecured Notes

Rhea-AI Summary

Charter Communications, Inc. (NASDAQ: CHTR) has successfully closed a transaction for $1.5 billion in senior unsecured notes due 2031, which bear an interest rate of 4.250% annually. The notes were sold at 102.000% of the principal amount and targeted qualified institutional buyers, both domestically under Rule 144A and internationally under Regulation S. Notably, these notes are unregistered under the Securities Act of 1933 and cannot be sold in the U.S. without proper registration or exemptions.

Positive

• Raised $1.5 billion through senior unsecured notes, enhancing liquidity.
• Interest rate of 4.250% is competitive for long-term financing.

Negative

• Notes are unregistered, posing potential access limitations for investors.

STAMFORD, Conn., July 24, 2020 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. (collectively, the "Issuers"), have closed on $1.5 billion in aggregate principal amount of senior unsecured notes due 2031 (the "Notes"). The Notes form a part of the same series as the Issuers' senior unsecured notes due 2031 issued on July 9, 2020, which bear interest at a rate of 4.250% per annum. The Notes were issued at a price of 102.000% 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 29 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, sports and high-quality original programming to its customers through Spectrum Networks and Spectrum Originals. More information about Charter can be found at corporate.charter.com.

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SOURCE Charter Communications, Inc.

FAQ

What amount did Charter Communications raise through the new notes issuance?

Charter Communications raised $1.5 billion through the issuance of senior unsecured notes.

What is the interest rate on the senior unsecured notes issued by Charter?

The senior unsecured notes bear an interest rate of 4.250% per annum.

When are the senior unsecured notes due for Charter Communications?

The senior unsecured notes are due in 2031.

How were the notes sold by Charter Communications?

The notes were sold to qualified institutional buyers under Rule 144A and outside the U.S. under Regulation S.

What percentage of the principal amount was the notes issued at?

The notes were issued at a price of 102.000% of the aggregate principal amount.