8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Dec 2, 2011)

Filed December 2, 2011For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on November 30, 2011, that its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., will offer $750 million in aggregate principal amount of senior unsecured notes due 2020 with a 7.375% interest rate. The net proceeds from this offering, along with potential borrowings from its revolving credit facility, are intended to fund tender offers for outstanding debt. These tender offers aim to repurchase up to $1.0 billion of existing notes, specifically Charter Operating's 8.00% senior second lien notes due 2012, its 10.875% senior second lien notes due 2014, and CCH II's 13.50% senior notes due 2016. The company is offering a premium for early tender of these notes, with an early tender deadline of December 13, 2011, and final expiration of the tender offers on December 28, 2011. This move suggests a proactive debt management strategy by Charter.

Key Highlights

  • 1Charter Communications subsidiary CCO Holdings to offer $750 million in 7.375% senior unsecured notes due 2020.
  • 2Proceeds from the new note offering and credit facility will fund tender offers for existing debt.
  • 3Up to $1.0 billion aggregate purchase price allocated for tender offers.
  • 4Tender offers include Charter Operating's 8.00% notes due 2012 and 10.875% notes due 2014.
  • 5Tender offers also include CCH II's 13.50% notes due 2016.
  • 6Incentives offered for early tender of notes, with an early tender deadline of December 13, 2011.
  • 7Tender offers expire on December 28, 2011.

Frequently Asked Questions

The primary purpose of the new $750 million senior unsecured notes due 2020 offering is to finance tender offers for up to $1.0 billion of existing outstanding debt obligations of Charter's subsidiaries, Charter Operating and CCH II.

Charter is looking to repurchase its subsidiaries' 8.00% senior second lien notes due 2012, 10.875% senior second lien notes due 2014, and CCH II's 13.50% senior notes due 2016.

Yes, bondholders who validly tender their notes on or before the Early Tender Deadline of December 13, 2011, will receive a specified Early Tender Payment in addition to the purchase price. This incentivizes early participation in the tender offers.

Charter has set a maximum purchase price of $1.0 billion (exclusive of accrued and unpaid interest) for the aggregate of all notes tendered and accepted in the offers.