Charter Offers Senior Unsecured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced on July 21, 2020, the intention to offer senior unsecured notes due 2031, part of a $1.5 billion issuance from July 9, 2020. The net proceeds will be used for corporate purposes, including repaying debt and potential buybacks of common stock. The offering targets qualified institutional buyers and adheres to Rule 144A and Regulation S. Importantly, these notes are not registered under the Securities Act of 1933 and the offering is subject to market conditions, not constituting an offer to sell in any unlawful jurisdiction.

Positive

• Intended use of proceeds includes potential stock buybacks, which could enhance shareholder value.

Negative

• The offering of notes may increase the company's debt burden.
• Notes are not registered under securities laws, limiting their sale.

STAMFORD, Conn., July 21, 2020 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. (collectively, "CCO Holdings"), intend to offer senior unsecured notes due 2031 (the "Notes"). The Notes will form a part of the same series of 4.250% Senior Unsecured Notes issued on July 9, 2020 in the aggregate principal amount of $1.5 billion.

Charter intends to use the net proceeds from the sale of the Notes to pay related fees and expenses and for general corporate purposes, including repaying certain indebtedness at CCO Holdings as well as to fund potential buybacks of Class A common stock of Charter or common units of Charter Communications Holdings, LLC.

The Notes will be 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. The offering is subject to, among other things, market conditions.

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 29 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, the potential offering.  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," 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.

View original content to download multimedia:http://www.prnewswire.com/news-releases/charter-offers-senior-unsecured-notes-301097059.html

SOURCE Charter Communications, Inc.

FAQ

What is the purpose of Charter Communications' new senior unsecured notes offering?

Charter intends to use the proceeds for general corporate purposes, including debt repayment and potential stock buybacks.

When did Charter Communications announce its senior unsecured notes offering?

The announcement was made on July 21, 2020.

What is the principal amount of the senior unsecured notes offered by Charter Communications?

The offering includes senior unsecured notes totaling $1.5 billion.

Who can purchase the senior unsecured notes offered by Charter Communications?

The notes are offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

What are the risks associated with Charter's senior unsecured notes offering?

The offering is subject to market conditions and the notes are not registered under the Securities Act, which may limit their marketability.