Charter Prices $3.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications, Inc. (NASDAQ: CHTR) priced $3.0 billion in Senior Secured Notes, consisting of $1.5 billion due 2029 and $1.5 billion due 2034. The net proceeds will be used for debt repayment, buybacks, and general corporate purposes. The offering is expected to close on May 14, 2024.

Positive

• Charter Communications, Inc. priced $3.0 billion in Senior Secured Notes, indicating strong investor confidence.

• The net proceeds from the sale will be used for debt repayment, buybacks, and general corporate purposes, showcasing strategic financial planning.

Negative

• The offering of Senior Secured Notes will increase Charter's debt obligations, potentially impacting its financial leverage.

• Issuing new debt to fund potential buybacks may not result in desired stock price appreciation, affecting shareholder returns.

STAMFORD, Conn., May 9, 2024 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC ("CCO") and Charter Communications Operating Capital Corp. ("CCO Capital," and together with CCO, the "Issuers"), have priced $3.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.5 billion in aggregate principal amount of Senior Secured Notes due 2029 (the "2029 Notes"). The 2029 Notes will bear interest at a rate of 6.100% per annum and will be issued at a price of 99.944% of the aggregate principal amount.
• $1.5 billion in aggregate principal amount of Senior Secured Notes due 2034 (the "2034 Notes" and, together with the 2029 Notes, the "Notes"). The 2034 Notes will bear interest at a rate of 6.550% per annum and will be issued at a price of 99.755% of the aggregate principal amount.

The Issuers intend to use the net proceeds from the sale of the Notes to prepay borrowings outstanding under CCO's existing senior secured term loan B-1 facility (including accrued but unpaid interest related thereto), to fund an offer to purchase for cash a portion of the Issuers' outstanding 4.908% senior secured notes due 2025, and for general corporate purposes, including, to fund potential buybacks of Class A common stock of Charter and common units of Charter Communications Holdings, LLC and to pay related fees and expenses. Charter expects to close the offering of the Notes on May 14, 2024, 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").

Barclays Capital Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were Joint Book-Running Managers for the senior secured notes offering. The offering was made only by means of a prospectus supplement dated May 9, 2024 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 Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone: 1-888-603-5847 or by emailing: barclaysprospectus@broadridge.com, or by contacting Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146, E-mail: prospectus@citi.com, 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 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 and sports programming to its customers through Spectrum Networks. 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," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "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 the total amount of Senior Secured Notes priced by Charter Communications, Inc.?

Charter Communications, Inc. priced $3.0 billion in Senior Secured Notes.

When is the expected closing date for the offering of the Notes?

The offering of the Notes is expected to close on May 14, 2024.

How will Charter Communications, Inc. use the net proceeds from the sale of the Notes?

Charter Communications, Inc. intends to use the net proceeds for debt repayment, buybacks, and general corporate purposes.