Charter Prices $1.5 Billion Senior Unsecured Notes

Rhea-AI Summary

Charter Communications, Inc. (NASDAQ: CHTR) announced the pricing of $1.5 billion in senior unsecured notes due 2031, with an interest rate of 4.250%. The offering aims to repay existing senior notes and potentially fund Class A common stock buybacks. The expected closing date for this transaction is July 9, 2020. The notes will be sold to qualified institutional buyers and will not be registered under the Securities Act, limiting their offering in the U.S. The company emphasizes that the communication includes forward-looking statements subject to risks and uncertainties.

Positive

• Issued $1.5 billion senior unsecured notes, enhancing capital structure.
• Interest rate of 4.250% considered favorable in current market.
• Proceeds aimed at reducing existing debt and potential share buybacks.

Negative

• Dependence on market conditions for closing the offering.
• Notes not registered under the Securities Act, limiting market access.

STAMFORD, Conn., July 6, 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 2031 (the "Notes"). The Notes will bear interest at a rate of 4.250% 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 repay certain indebtedness under the Issuers' existing senior notes (including to potentially partially redeem the Issuers' 5.875% senior notes due 2024), 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 July 9, 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 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.

 

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SOURCE Charter Communications, Inc.

FAQ

What are the details of Charter's recent bond offering on July 6, 2020?

Charter priced $1.5 billion in senior unsecured notes due 2031 with a 4.250% interest rate, set to close on July 9, 2020.

What is the purpose of the $1.5 billion notes issued by Charter Communications?

The proceeds will be used to repay existing senior notes and potentially fund buybacks of Class A common stock.

Who can purchase the senior unsecured notes from Charter?

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

What risks are associated with Charter's bond offering?

The completion of the offering is subject to market conditions and the notes are unregistered under the Securities Act.