8-KMaterial AgreementsFinancial EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (May 10, 2011)

Filed May 10, 2011For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on May 10, 2011, a significant financing event through its indirect subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. These entities successfully completed the sale of $1.5 billion in aggregate principal amount of 6.500% Senior Notes due 2021. These new notes are fully and unconditionally guaranteed on a senior unsecured basis by Charter Communications, Inc. This transaction represents a substantial injection of capital, likely intended for operational needs, strategic initiatives, or debt management. Investors should note the long-term nature of these notes (due 2021) and their specific interest rate, which will impact the company's future interest expense.

Key Highlights

  • 1Charter Communications' subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., issued $1.5 billion in Senior Notes.
  • 2The Senior Notes mature in 2021 and carry a coupon rate of 6.500%.
  • 3Charter Communications, Inc. provides a full and unconditional senior unsecured guarantee for these notes.
  • 4The issuance of these notes was formalized through an Indenture dated May 10, 2011.
  • 5This filing indicates a significant debt financing event for the company.
  • 6The company is utilizing debt to fund its operations or strategic objectives.

Frequently Asked Questions

This 8-K filing is primarily to report the entry into a material definitive agreement, specifically the issuance of $1.5 billion in Senior Notes due 2021 by Charter Communications' subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp.

The Senior Notes have an aggregate principal amount of $1.5 billion, mature in 2021, and carry a fixed interest rate of 6.500% per annum.

Yes, Charter Communications, Inc. is providing a full and unconditional senior unsecured guarantee for the payment obligations of the Issuers under these Notes.

This issuance increases Charter's total debt. Investors should consider the impact on the company's leverage ratios, interest expense, and future cash flow obligations. The proceeds are likely intended for general corporate purposes, refinancing existing debt, or funding capital expenditures.