Charter Prices $4.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) announced the pricing of $4.0 billion in Senior Secured Notes. The offering includes:

• $1.25 billion due 2029 at 2.250% interest
• $1.35 billion due 2042 at 3.500% interest
• $1.4 billion due 2062 at 3.950% interest

The net proceeds will fund potential share buybacks, repay debt, and cover related expenses. The offering is set to close on October 12, 2021. This issuance is part of an automatic shelf registration statement with the SEC.

Positive

• Successful pricing of $4.0 billion in Senior Secured Notes provides liquidity.
• Lower interest rates on 2029 and 2042 Notes may enhance financial flexibility.

Negative

• Dependence on debt financing could raise leverage concerns among investors.

STAMFORD, Conn., Sept. 27, 2021 /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 $4.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.25 billion in aggregate principal amount of Senior Secured Notes due 2029 (the "2029 Notes"). The 2029 Notes will bear interest at a rate of 2.250% per annum and will be issued at a price of 99.835% of the aggregate principal amount.
• $1.35 billion in aggregate principal amount of Senior Secured Notes due 2042 (the "2042 Notes"). The 2042 Notes will bear interest at a rate of 3.500% per annum and will be issued at a price of 99.253% of the aggregate principal amount.
• $1.4 billion in aggregate principal amount of Senior Secured Notes due 2062 (the "2062 Notes," and together with the 2029 Notes and the 2042 Notes, the "Notes"). The 2062 Notes will bear interest at a rate of 3.950% per annum and will be issued at a price of 99.186% 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 October 12, 2021, 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").

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Morgan Stanley & Co LLC were Joint Book-Running Managers for the Notes offering. The offering was made only by means of a prospectus supplement dated September 27, 2021 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 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 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 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 31 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 the amount raised by Charter Communications in the latest notes offering?

Charter Communications raised $4.0 billion through its latest Senior Secured Notes offering.

What are the interest rates for Charter's Senior Secured Notes?

The interest rates are 2.250% for the 2029 Notes, 3.500% for the 2042 Notes, and 3.950% for the 2062 Notes.

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

The closing date for Charter's notes offering is October 12, 2021.

What will the proceeds from the notes offering be used for?

The proceeds will be used for general corporate purposes, including potential stock buybacks and debt repayment.