Charter Closes $4.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (CHTR) has successfully closed a $4.0 billion offering of senior secured notes with various maturities. The notes comprise $1.25 billion due in 2029 at 2.250%, $1.35 billion due in 2042 at 3.500%, and $1.4 billion due in 2062 at 3.950%. This issuance was executed under an effective automatic shelf registration with the SEC. The funds raised will bolster Charter’s financial position and operational capacity in the broadband market, catering to over 31 million customers across the U.S.

Positive

• Successfully raised $4.0 billion through a senior secured notes offering.
• Notes include favorable interest rates: 2.250% for 2029, 3.500% for 2042, and 3.950% for 2062.
• Strengthens financial position to support operations and expansion in the broadband sector.

Negative

• None.

STAMFORD, Conn., Oct. 12, 2021 /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 $4.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.25 billion in aggregate principal amount of Senior Secured Notes due 2029 (the "2029 Notes"). The 2029 Notes bear interest at a rate of 2.250% per annum and were issued at a price of 99.835% of the aggregate principal amount.
• $1.35 billion in aggregate principal amount of Senior Secured Notes due 2042 (the "2042 Notes"). The 2042 Notes bear interest at a rate of 3.500% per annum and were issued at a price of 99.253% of the aggregate principal amount.
• $1.4 billion in aggregate principal amount of Senior Secured Notes due 2062 (the "2062 Notes," and together with the 2029 Notes and the 2042 Notes, the "Notes"). The 2062 Notes bear interest at a rate of 3.950% per annum and were issued at a price of 99.186% 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").

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co. LLC were Joint Book-Running Managers for the Notes offering. The offering was made only by means of a prospectus supplement dated September 27, 2021 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 Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717; Telephone: (800) 831-9146; E-mail: prospectus@citi.com, 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 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 31 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 was the amount raised by Charter Communications in the recent notes offering?

Charter Communications raised $4.0 billion through its recent senior secured notes offering.

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

The notes include $1.25 billion due in 2029 at 2.250%, $1.35 billion due in 2042 at 3.500%, and $1.4 billion due in 2062 at 3.950%.

How will the funds from the notes offering impact Charter Communications?

The funds raised will enhance Charter's financial strength and support its operations in the broadband market.

Which firms managed the notes offering for Charter Communications?

Citigroup Global Markets, Deutsche Bank Securities, and Morgan Stanley were the Joint Book-Running Managers for the offering.

Is the notes offering by Charter Communications subject to SEC regulations?

Yes, the notes were issued pursuant to an effective automatic shelf registration statement with the SEC.