Charter Prices $3.5 Billion Senior Secured Notes
Charter Communications has priced $3.5 billion in senior secured notes, with three series due in 2033, 2053, and 2063. The 2033 Notes will carry an interest rate of 4.4%, the 2053 Notes at 5.25%, and the 2063 Notes at 5.5%. Proceeds will support general corporate purposes, including potential stock buybacks and debt repayment. Closing is expected on March 15, 2022. The offering complies with SEC regulations, with J.P. Morgan, Morgan Stanley, and Wells Fargo as joint book-running managers.
- Successfully priced $3.5 billion in senior secured notes.
- Attractive interest rates of 4.4%, 5.25%, and 5.5% for the respective notes.
- Intended use of proceeds includes potential stock buybacks, enhancing shareholder value.
- Strengthens financial position through debt repayment.
- None.
STAMFORD, Conn., March 10, 2022 /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
$1.0 billion in aggregate principal amount of Senior Secured Notes due 2033 (the "2033 Notes"). The 2033 Notes will bear interest at a rate of4.400% per annum and will be issued at a price of99.634% of the aggregate principal amount.$1.5 billion in aggregate principal amount of Senior Secured Notes due 2053 (the "2053 Notes"). The 2053 Notes will bear interest at a rate of5.250% per annum and will be issued at a price of99.300% of the aggregate principal amount.$1.0 billion in aggregate principal amount of Senior Secured Notes due 2063 (the "2063 Notes," and together with the 2033 Notes and the 2053 Notes, the "Notes"). The 2063 Notes will bear interest at a rate of5.500% per annum and will be issued at a price of99.255% 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 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 March 15, 2022, 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").
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC were Joint Book-Running Managers for the senior secured notes offering. The offering was made only by means of a prospectus supplement dated March 10, 2022 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 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, or by contacting Wells Fargo Securities, LLC, Attention: WFS Customer Service, 550 South Tyron Street, 5th Floor, Charlotte, North Carolina 28202; E-mail: wfscustomerservice@wellsfargo.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, 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," "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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/charter-prices-3-5-billion-senior-secured-notes-301500651.html
SOURCE Charter Communications, Inc.
FAQ
What is the total amount of senior secured notes priced by Charter on March 10, 2022?
What are the interest rates for Charter's senior secured notes due in 2033, 2053, and 2063?
What will Charter do with the proceeds from the senior secured notes?
When is the expected closing date for Charter's notes offering?
Who are the joint book-running managers for Charter's notes offering?
