Charter Closes $3.5 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) has successfully closed a $3.5 billion offering of senior secured notes. The issuance includes three series: $1.0 billion due 2033 at 4.400% interest, $1.5 billion due 2053 at 5.250%, and $1.0 billion due 2063 at 5.500%. The notes were issued under an effective shelf registration with the SEC. J.P. Morgan, Morgan Stanley, and Wells Fargo acted as joint book-running managers for this offering. The notes provide Charter with capital for future growth and operational support.

Positive

• Successfully raised $3.5 billion through senior secured notes.
• Interest rates on the notes are competitive at 4.400%, 5.250%, and 5.500%.

Negative

• None.

STAMFORD, Conn, March 15, 2022 /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 their offering of $3.5 billion in aggregate principal amount of notes consisting of the following securities:

• $1.0 billion in aggregate principal amount of Senior Secured Notes due 2033 (the "2033 Notes"). The 2033 Notes bear interest at a rate of 4.400% per annum and were issued at a price of 99.634% of the aggregate principal amount.
• $1.5 billion in aggregate principal amount of Senior Secured Notes due 2053 (the "2053 Notes"). The 2053 Notes bear interest at a rate of 5.250% per annum and were issued at a price of 99.300% of the aggregate principal amount.
• $1.0 billion in aggregate principal amount of Senior Secured Notes due 2063 (the "2063 Notes," and together with the 2033 Notes and the 2053 Notes, the "Notes"). The 2063 Notes bear interest at a rate of 5.500% per annum and were issued at a price of 99.255% 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").

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were Joint Book-Running Managers for the senior secured notes offering. The offering was made only by means of a prospectus supplement dated March 10, 2022 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 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, or by contacting Wells Fargo Securities, LLC, Attention: WFS Customer Service, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402; E-mail: wfscustomerservice@wellsfargo.com; Toll-Free: (800) 645-3751.

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, 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 recent financial move did Charter Communications (CHTR) announce?

Charter Communications announced the closure of a $3.5 billion offering of senior secured notes on March 15, 2022.

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

The interest rates for Charter's senior secured notes are 4.400% for the 2033 notes, 5.250% for the 2053 notes, and 5.500% for the 2063 notes.

Who managed Charter's recent $3.5 billion note offering?

J.P. Morgan, Morgan Stanley, and Wells Fargo were the joint book-running managers for the offering.

What is the maturity schedule for Charter's newly issued senior secured notes?

Charter's senior secured notes mature in 2033, 2053, and 2063.