8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Apr 16, 2010)

Filed April 16, 2010For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on April 16, 2010, detailing significant financing activities undertaken by its subsidiary, CCO Holdings, LLC. The company announced its intention to offer and subsequently priced $1.6 billion in aggregate principal amount of Senior Notes across two tranches: $900 million of 7.875% Senior Notes due 2018 and $700 million of 8.125% Senior Notes due 2020. These new notes are being issued to finance tender offers for existing debt. Specifically, the proceeds from the new notes will be used to purchase any and all outstanding 8.750% Senior Notes due 2013 ($800 million principal) issued by CCO Holdings, LLC, and any and all outstanding 8.375% Senior Second Lien Notes due 2014 ($770 million principal) issued by Charter Communications Operating, LLC, a subsidiary of CCO Holdings. This move signals a strategic refinancing effort by Charter Communications to manage its debt maturity profile and potentially lower its overall interest expense.

Key Highlights

  • 1Charter Communications subsidiary, CCO Holdings, LLC, plans to issue $1.6 billion in Senior Notes due 2018 and 2020.
  • 2The new notes consist of $900 million at 7.875% due 2018 and $700 million at 8.125% due 2020.
  • 3Proceeds will fund tender offers for CCO Holdings' 8.750% Senior Notes due 2013 ($800 million outstanding).
  • 4Proceeds will also fund tender offers for Charter Communications Operating, LLC's 8.375% Senior Second Lien Notes due 2014 ($770 million outstanding).
  • 5The company is actively managing its debt by refinancing existing obligations with new debt.
  • 6The debt issuance is structured to comply with Rule 144A for qualified institutional buyers and Regulation S for non-U.S. persons.

Frequently Asked Questions

This Form 8-K filing announces significant financing activities by Charter Communications' subsidiary, CCO Holdings, LLC. It details the intention to issue and the pricing of $1.6 billion in Senior Notes and the commencement of tender offers to repurchase existing debt.

Charter Communications is refinancing its debt. The company is issuing new notes to raise capital, which will then be used to purchase its outstanding 2013 and 2014 notes. This strategy aims to manage debt maturities and potentially secure more favorable interest rates.

The company priced $1.6 billion in Senior Notes, split into two tranches: $900 million aggregate principal amount of 7.875% Senior Notes due 2018 and $700 million aggregate principal amount of 8.125% Senior Notes due 2020.

Charter Communications, through its subsidiaries, is commencing tender offers for any and all of its outstanding 8.750% Senior Notes due 2013 (with $800 million principal outstanding) and its 8.375% Senior Second Lien Notes due 2014 (with $770 million principal outstanding).