Charter Closes $750 Million Senior Unsecured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the closure of $750 million in senior unsecured notes due 2033, issued by subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. The notes carry an interest rate of 4.500% per annum and were sold at 99.250% of the principal amount. These notes were issued to qualified institutional buyers under Rule 144A and outside the United States under Regulation S. This transaction does not constitute an offer or solicitation in any jurisdiction where it would be unlawful.

Positive

• Raised $750 million through senior unsecured notes, bolstering liquidity.
• Interest rate of 4.500% is relatively low, reducing overall borrowing costs.

Negative

• Notes not registered under the Securities Act, limiting their marketability.
• Long-term debt increase may raise future financial obligations.

STAMFORD, Conn., June 2, 2021 /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 $750 million in aggregate principal amount of senior unsecured notes due 2033 (the "Notes"). The Notes form a part of the same series as the Issuers' senior unsecured notes due 2033 issued on April 22, 2021, which bear interest at a rate of 4.500% per annum. The Notes were issued at a price of 99.250% 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 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 are the details of Charter Communications' recent bond issuance?

Charter issued $750 million in senior unsecured notes due 2033 with a 4.500% interest rate.

How will the $750 million notes affect Charter Communications' financial position?

The notes will improve liquidity but may increase future debt levels.

When were the notes issued by Charter Communications?

The notes were closed on June 2, 2021.

Why is Charter Communications issuing senior unsecured notes?

The issuance is part of a strategy to raise capital and improve liquidity.