8-KRegulation FD

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Regulation FD Disclosure (Jun 21, 2017)

Filed June 21, 2017For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on June 21, 2017, an intention to offer $1.5 billion in aggregate principal amount of senior unsecured notes due 2028. The proceeds from this offering are earmarked for general corporate purposes, including potential share buybacks of Class A common stock or common units of its subsidiary, Charter Communications Holdings, LLC. This move indicates a strategy to potentially enhance shareholder value through buybacks and maintain financial flexibility for ongoing operations. Furthermore, Charter disclosed a strategic agreement with Comcast Corporation to explore operational cooperation in their respective wireless businesses for one year. This collaboration, which includes leveraging Verizon Wireless as an MVNO, aims to accelerate and improve each company's ability to participate in the national wireless market. Investors should monitor developments related to this partnership as it could lead to significant investments and potential joint ventures in the wireless space, presenting both opportunities and risks.

Key Highlights

  • 1Charter Communications announces a $1.5 billion offering of senior unsecured notes due 2028.
  • 2Proceeds from the notes offering are intended for general corporate purposes, including potential share buybacks.
  • 3The company is exploring operational cooperation in the wireless business with Comcast for one year.
  • 4This cooperation involves activating MVNO reseller agreements with Verizon Wireless.
  • 5Areas of potential collaboration with Comcast include common operating platforms, technical standards, and logistics.
  • 6The wireless partnership with Comcast is aimed at enhancing market participation and offering innovative products to customers.
  • 7Charter may consider joint ventures or partnerships in the wireless sector, requiring significant investment.

Frequently Asked Questions

The primary purpose of the $1.5 billion senior unsecured notes offering is to fund general corporate purposes. This includes paying related fees and expenses, and importantly, to potentially fund buybacks of Charter's Class A common stock or common units of its subsidiary, Charter Communications Holdings, LLC.

Charter and Comcast have agreed to explore potential opportunities for operational cooperation in their respective wireless businesses for one year. This involves separately activating MVNO reseller agreements with Verizon Wireless and working together on areas such as common operating platforms, technical standards, and logistics to enhance their participation in the national wireless market.

The cooperation with Comcast could lead to significant efficiencies, more innovative products, and competitive pricing for customers. It also opens the door for Charter to consider and pursue opportunities in the wireless space, which may include entering into joint ventures or partnerships that could require substantial investment in its wireless business.

No, the Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws. They are being offered and sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S.