Charter Prices $1.5 Billion Senior Unsecured Notes

Rhea-AI Summary

Charter Communications, Inc. (NASDAQ: CHTR) has priced $1.5 billion in senior unsecured notes due 2029 at an interest rate of 6.375%. The proceeds will fund general corporate purposes, including potential buybacks of Class A common stock and debt repayment. The offering, expected to close on August 9, 2022, is targeted at qualified institutional buyers under Rule 144A and Regulation S, and the notes are not registered under the Securities Act. This move underscores Charter's strategic financial management amid changing market conditions.

Positive

• Pricing of $1.5 billion in senior unsecured notes at a favorable interest rate of 6.375%.
• Proceeds aimed at funding buybacks, which may enhance shareholder value.

Negative

• Notes not registered under the Securities Act may limit liquidity for investors.
• The reliance on institutional buyers could constrict retail investor participation.

STAMFORD, Conn., Aug. 4, 2022 /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 2029 (the "Notes"). The Notes will bear interest at a rate of 6.375% per annum and will be issued at a price of 100.000% 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 fund potential buybacks of Class A common stock of Charter and common units of Charter Communications Holdings, LLC, to repay certain indebtedness and to pay related fees and expenses. Charter expects to close the offering of the Notes on August 9, 2022, 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 32 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 are the details of Charter's recent note offering?

Charter priced $1.5 billion in senior unsecured notes due 2029 with a 6.375% interest rate.

What will Charter do with the proceeds from the note offering?

Proceeds will fund stock buybacks, repay debt, and cover related expenses.

When is the expected closing date for Charter's note offering?

The offering is expected to close on August 9, 2022.

Who can purchase the senior unsecured notes from Charter?

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

What risks are associated with Charter's new notes?

The notes are not registered under the Securities Act, which may impact their liquidity.