Summary
Charter Communications, Inc. (CHTR) announced a significant debt issuance through its indirect subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. On August 17, 2005, the company entered into a Supplemental Indenture to issue $300 million in 8.75% senior notes due 2013. These notes are unsecured and rank equally with existing senior unsecured debt. These new notes are substantially identical to previously issued notes, with the key difference being their subject to transfer restrictions until an exchange offer is completed. Charter has also entered into a Registration Rights Agreement obligating it to file for an exchange offer registration statement within 90 days and have it become effective within 210 days, with consummation within 30 business days thereafter. Failure to meet these obligations could result in special interest payments to noteholders, indicating a commitment to providing registered securities to investors.
Key Highlights
- 1Charter Communications, Inc. (via subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp.) issued $300 million in 8.75% senior notes due 2013.
- 2The new notes are unsecured and rank equally with existing senior unsecured debt.
- 3The issuance is a refinancing or an addition to existing debt, as the terms are substantially identical to previously issued notes.
- 4A Registration Rights Agreement mandates Charter to file for an exchange offer for these notes within 90 days and complete it within a specified timeframe.
- 5Failure to comply with registration rights obligations may result in special interest payments to noteholders.
- 6The notes were sold to qualified institutional buyers (Rule 144A) and non-U.S. persons outside the U.S. (Regulation S).
- 7A change of control event could trigger an offer to repurchase the notes at 101% of principal plus accrued interest.