Charter Prices $1.5 Billion Senior Unsecured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the pricing of $1.5 billion in senior unsecured notes due 2032, set to close on October 13, 2020. The notes will yield an interest rate of 4.500% per annum and will be issued at 103.750% of the principal amount. Proceeds will be utilized for general corporate purposes, including repaying existing debt and potential share buybacks. The offering is subject to market conditions and regulatory exemptions for buyers. The company emphasizes that this news does not constitute an offer to sell the notes.

Positive

• Issuance of $1.5 billion in senior unsecured notes improves liquidity.
• The 4.500% interest rate is favorable for long-term financing.
• Proceeds can be used to potentially redeem higher-interest existing debt.

Negative

• Increased leverage with additional unsecured debt issuance may raise financial risk.
• The notes are sold under exemptions, limiting broader investment access.

STAMFORD, Conn., Oct. 7, 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, the "Issuers"), have priced $1.5 billion in aggregate principal amount of senior unsecured notes due 2032 (the "Notes"). The Notes will form a part of the same series as the Issuers' senior unsecured notes due 2032 issued on March 18, 2020, which bear interest at a rate of 4.500% per annum. The Notes will be issued at a price of 103.750% of the aggregate principal amount.

The Issuers intend to use the net proceeds from the sale of the Notes for general corporate purposes, including to repay certain indebtedness under the Issuer's existing senior notes (including to potentially redeem all of the Issuer's 5.375% senior notes due 2025), and to fund potential buybacks of Class A common stock of Charter or common units of Charter Communications Holdings, LLC and to pay related fees and expenses. Charter expects to close the offering of the Notes on October 13, 2020, subject to customary closing conditions.

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. 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 30 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 the purpose of Charter's $1.5 billion notes issuance?

The proceeds will be used for general corporate purposes, including debt repayment and potential stock buybacks.

What is the interest rate for Charter's new senior unsecured notes?

The interest rate for the new senior unsecured notes is 4.500% per annum.

When is Charter expected to close the offering of the notes?

The closing of the offering is expected on October 13, 2020.

Who are the buyers of the new senior unsecured notes issued by Charter?

The notes were sold to qualified institutional buyers under Rule 144A and outside the U.S. to non-U.S. persons under Regulation S.

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

The offering is subject to market conditions and the notes may not be registered, limiting their sale in certain jurisdictions.