Summary
Charter Communications, Inc. (CHTR) announced on July 19, 2005, that the SEC has declared effective its registration statement on Form S-1 for up to 150 million shares of Class A common stock. These shares are intended to be loaned to Citigroup Global Markets Limited for a public offering on a "best efforts" basis. The primary purpose of this offering is to enable investors in Charter's 5.875% convertible senior notes due 2009 to hedge their investments. This action provides a mechanism for noteholders to manage the risk associated with their convertible note holdings, particularly in anticipation of market movements.
Key Highlights
- 1SEC declares effective Charter's registration statement for 150 million shares of Class A common stock.
- 2Shares will be loaned to Citigroup Global Markets Limited for a public offering.
- 3The offering is being conducted on a 'best efforts' basis.
- 4The primary goal is to allow investors in the 5.875% convertible senior notes due 2009 to hedge their investments.
- 5This facilitates risk management for holders of Charter's convertible senior notes.
Frequently Asked Questions
The shares are intended to be loaned to Citigroup Global Markets Limited for a public offering. The primary purpose is to provide investors in Charter's 5.875% convertible senior notes due 2009 with a way to hedge their investments in these notes.
Citigroup Global Markets Limited is involved in facilitating the public offering of Charter's Class A common stock by receiving the shares on loan from Charter for sale.
A 'best efforts' offering means that the underwriter (in this case, Citigroup) is not obligated to purchase any unsold shares. They will use their best efforts to sell as many shares as possible to investors.
This offering is directly related to Charter's 5.875% convertible senior notes due 2009, which were issued on November 22, 2004.