Charter Prices $1.5 Billion Senior Unsecured Notes

Rhea-AI Summary

Charter Communications has priced $1.5 billion in senior unsecured notes due 2031, which will bear an interest rate of 4.250% per annum. The notes will be sold at 102% of the principal amount and are intended for general corporate purposes, including repaying existing debt and funding potential stock buybacks. Closing of the offering is expected on July 24, 2020. The notes have not been registered under the Securities Act and are offered primarily to qualified institutional buyers. Charter serves over 29 million customers across 41 states through its Spectrum brand.

Positive

• Successful pricing of $1.5 billion in senior unsecured notes to support corporate financing.
• Interest rate of 4.250% is competitive.
• Proceeds will aid in repaying higher-interest debt, potentially improving financial stability.

Negative

• Issuance of new debt could increase overall leverage.
• Dependence on market conditions for successful closing of the offering.

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, the "Issuers"), have priced $1.5 billion in aggregate principal amount of senior unsecured notes due 2031 (the "Notes"). The Notes will form a part of the same series as the Issuers' senior unsecured notes due 2031 issued on July 9, 2020, which bear interest at a rate of 4.250% per annum. The Notes will be issued at a price of 102.000% 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 redeem all of 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 24, 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 is the significance of Charter's $1.5 billion senior unsecured notes offering?

The offering helps Charter refinance existing debt and potentially fund stock buybacks, enhancing financial flexibility.

What is the interest rate for the newly priced notes by Charter Communications?

The notes will bear an interest rate of 4.250% per annum.

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

Charter expects to close the offering on July 24, 2020.

How will Charter use the proceeds from the senior notes offering?

The proceeds will be used for general corporate purposes, including repaying certain debt and potentially buybacks of Class A common stock.

Are the new senior unsecured notes from Charter registered under the Securities Act?

No, the notes have not been registered under the Securities Act and are offered under exemptions.