Charter Offers Senior Secured Notes
Charter Communications (NASDAQ: CHTR) announced on February 18, 2021, an offering of Senior Secured Notes due in 2041, 2052, and 2061, part of a $1.35 billion series initiated in December 2020. The net proceeds will be used for general corporate purposes, including possible stock buybacks and debt repayment. The offering is contingent on market conditions and will be conducted under an effective SEC registration statement. Credit Suisse, J.P. Morgan, and Morgan Stanley are the Joint Book-Running Managers for this offering.
- Offering of Senior Secured Notes can enhance liquidity and financial flexibility.
- Potential use of proceeds to fund stock buybacks may boost shareholder value.
- Issuing new debt may increase overall leverage and financial risk.
STAMFORD, Conn., Feb. 18, 2021 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC ("CCO") and Charter Communications Operating Capital Corp., intend to offer the following securities:
- Senior Secured Notes due 2041 (the "2041 Notes"),
- Senior Secured Notes due 2052 (the "2052 Notes"), and,
- Senior Secured Notes due 2061 (the "2061 Notes," and together with the 2041 Notes and the 2052 Notes, the "Notes"). The 2061 Notes will form a part of the same series of
3.850% Senior Secured Notes issued on December 4, 2020 in the aggregate principal amount of$1.35 billion .
Charter intends to use the net proceeds from the sale of the Notes for general corporate purposes, including to fund potential buybacks of Class A common stock of Charter or common units of Charter Communications Holdings, LLC, to repay certain indebtedness and to pay related fees and expenses.
The offering and sale of the Notes will be made pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC"). The offering is subject to, among other things, market conditions.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co LLC will act as Joint Book-Running Managers for the senior secured notes offering. The offering will be made only by means of a prospectus supplement dated February 18, 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 Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, North Carolina 27560, United States; Telephone: (800) 221-1037; E-mail: usa.prospectus@credit-suisse.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, nor is it an offer to purchase, or the solicitation of an offer to sell the Notes 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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases" and "potential," among others.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
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SOURCE Charter Communications, Inc.
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