Charter Offers Senior Unsecured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the intention to offer senior unsecured notes due 2033, part of a previously issued series of 4.500% Senior Unsecured Notes totaling $1.0 billion. Net proceeds from this offering will be used for general corporate purposes, including Class A common stock buybacks and debt repayments. The notes will be sold under Rule 144A to qualified institutional buyers and non-U.S. persons outside the United States. They have not been registered under the Securities Act, hence the offering is subject to market conditions.

Positive

• Intended use of proceeds for stock buybacks and debt repayment may enhance shareholder value.

Negative

• Offering notes may increase overall indebtedness if not managed judiciously.

STAMFORD, Conn., May 18, 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. (collectively, the "Issuers"), intend to offer senior unsecured notes due 2033 (the "Notes"). The Notes will form a part of the same series of 4.500% Senior Unsecured Notes issued on April 22, 2021 in the aggregate principal amount of $1.0 billion.

The Issuers intend 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 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 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, 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.

 

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SOURCE Charter Communications, Inc.

FAQ

What is Charter Communications planning to do with the senior unsecured notes?

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

When are the senior unsecured notes due?

The senior unsecured notes are due in 2033.

How much is Charter Communications looking to raise with the new notes?

Charter Communications is looking to raise funds as part of an offering that totals $1.0 billion.

Who can purchase the senior unsecured notes?

The notes will be sold to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States.

What interest rate will the new senior unsecured notes have?

The new senior unsecured notes will have an interest rate of 4.500%.