Charter Closes $3.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the closing of a $3.0 billion offering of senior secured notes with different maturity dates. This includes $1.0 billion in 2032 notes at 2.300% interest, $650 million in 2051 notes at 3.700%, and $1.35 billion in 2061 notes at 3.850% interest. The issuance was made under an effective shelf registration statement filed with the SEC. The offering was managed by Deutsche Bank, J.P. Morgan, and Morgan Stanley. The company serves over 30 million customers through its Spectrum brand, providing a variety of broadband and cable services.

Positive

• $3.0 billion raised through the issuance of senior secured notes
• Lower interest rate on the 2032 notes at 2.300%
• Strong market position serving over 30 million customers through Spectrum

Negative

• Higher interest rates on 2051 notes at 3.700% and 2061 notes at 3.850%

STAMFORD, Conn., Dec. 4, 2020 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. (collectively, the "Issuers"), have closed on $3.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.0 billion in aggregate principal amount of senior secured notes due 2032 (the "2032 Notes"). The 2032 Notes bear interest at a rate of 2.300% per annum and were issued at a price of 99.786% of the aggregate principal amount.
• $650 million in aggregate principal amount of senior secured notes due 2051 (the "2051 Notes"). The 2051 Notes form a part of the same series as the Issuers' senior secured notes due 2051 issued on April 17, 2020, which bear interest at a rate of 3.700% per annum. The 2051 Notes were issued at a price of 100.791% of the aggregate principal amount.
• $1.35 billion in aggregate principal amount of senior secured notes due 2061 (the "2061 Notes," and together with the 2032 Notes and 2051 Notes, the "Notes"). The 2061 Notes bear interest at a rate of 3.850% per annum and were issued at a price of 99.882% of the aggregate principal amount.

The Notes were issued pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission ("SEC").

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were Joint Book-Running Managers for the offering. The offering was made only by means of a prospectus supplement dated November 19, 2020 and the accompanying base prospectus, copies of which, when available, may be obtained on the SEC's website at www.sec.gov or by contacting Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005; Telephone: (800) 503-4611; E-mail: prospectus.CPDG@db.com, or by contacting J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, New York, 10179; Telephone: (212) 834-4533, or by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; E-mail: prospectus@morganstanley.com.

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 30 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 of senior secured notes did Charter Communications issue?

Charter Communications issued $3.0 billion in senior secured notes.

What are the interest rates for Charter's senior secured notes?

The notes have interest rates of 2.300% for 2032 notes, 3.700% for 2051 notes, and 3.850% for 2061 notes.

Who managed the offering of Charter's notes?

The offering was managed by Deutsche Bank, J.P. Morgan, and Morgan Stanley.

How many customers does Charter Communications serve?

Charter Communications serves over 30 million customers across 41 states.