Charter Prices $3.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the pricing of $3.0 billion in senior secured notes across three tranches: $1.0 billion due 2032 at 2.300% interest, $650 million due 2051 at 3.700%, and $1.35 billion due 2061 at 3.850%. The offering aims to fund general corporate purposes, including stock buybacks and debt repayment. The closing is set for December 4, 2020, pending customary conditions. The notes were offered under an SEC automatic shelf registration statement, managed by Deutsche Bank, J.P. Morgan, and Morgan Stanley.

Positive

• Secured $3.0 billion in financing through senior secured notes.
• Interest rates of 2.300% for 2032 Notes, 3.700% for 2051 Notes, and 3.850% for 2061 Notes indicate favorable borrowing terms.

Negative

• None.

STAMFORD, Conn., Nov. 19, 2020 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. (collectively, the "Issuers"), have priced $3.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.0 billion in aggregate principal amount of senior secured notes due 2032 (the "2032 Notes"). The 2032 Notes will bear interest at a rate of 2.300% per annum and will be issued at a price of 99.786% of the aggregate principal amount.
• $650 million in aggregate principal amount of senior secured notes due 2051 (the "2051 Notes"). The 2051 Notes will form a part of the same series as the Issuers' senior secured notes due 2051 issued on April 17, 2020, which bear interest at a rate of 3.700% per annum. The 2051 Notes will be issued at a price of 100.791% of the aggregate principal amount.
• $1.35 billion in aggregate principal amount of senior secured notes due 2061 (the "2061 Notes," and together with the 2032 Notes and 2051 Notes, the "Notes"). The 2061 Notes will bear interest at a rate of 3.850% per annum and will be issued at a price of 99.882% of the aggregate principal amount.

Charter intends 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. Charter expects to close the offering of the Notes on December 4, 2020, subject to customary closing conditions.

The offering and sale of the Notes were made pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC").

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co LLC were Joint Book-Running Managers for the offering. The offering was made only by means of a prospectus supplement dated November 19, 2020 and the accompanying base prospectus, copies of which, when available, may be obtained on the SEC's website at www.sec.gov or by contacting Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005; Telephone: (800) 503-4611; E-mail: prospectus.CPDG@db.com, or by contacting J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk, 383 Madison Avenue, New York, New York, 10179; Telephone: (212) 834-4533, or by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014; E-mail: prospectus@morganstanley.com.

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, nor is it an offer to purchase, or the solicitation of an offer to sell the Notes 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, our plans, strategies and prospects, both business and financial.  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," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "focused on" 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' recent financial announcement?

Charter announced the pricing of $3.0 billion in senior secured notes.

What are the interest rates for the new senior secured notes issued by Charter (CHTR)?

The 2032 Notes have an interest rate of 2.300%, the 2051 Notes have 3.700%, and the 2061 Notes have 3.850%.

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

The closing date for the offering is scheduled for December 4, 2020.

What will Charter use the proceeds from the note offering for?

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