Charter Communications Offers Senior Secured Notes of $2.0 Billion
Earlier this week Charter Communications announced that its subsidiaries, Charter Communications Operating, LLC (“CCO”) and Charter Communications Operating Capital Corp., intend to offer senior secured fixed rate notes.
The company priced $2.0 billion in aggregate principal amount of notes consisting of the following securities (collectively, the “Notes”):
- $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 5.050% per annum and will be issued at a price of 99.935% of the aggregate principal amount; and
- $750 million in aggregate principal amount of senior secured notes due 2048 (the “2048 Notes”). The 2048 Notes will form a part of the same series as the Issuers’ senior secured notes due 2048 issued April 3, 2018, which bear interest at a rate of 5.750% per annum. The 2048 Notes will be issued at a price of 94.970% of the aggregate principal amount.
The broadband communications company 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 and to repay certain indebtedness, including to repurchase, redeem or repay at maturity Time Warner Cable, LLC’s 8.750% senior notes due 2019 and/or to repay a portion of the outstanding balance under CCO’s revolving credit facility.
The offering and sale of the Notes will be made in accordance with an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the “SEC”). The offering is subjected but not limited to market conditions.