8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Apr 6, 2018)

Filed April 6, 2018For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on April 6, 2018, to announce a significant debt offering. The company, through its operating subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., entered into an underwriting agreement to issue and sell a substantial amount of senior secured notes. Specifically, Charter Communications is issuing $800 million in 5.375% Senior Secured Notes due 2038 and $1.7 billion in 5.750% Senior Secured Notes due 2048. This offering aims to raise a total of $2.5 billion. The proceeds from these notes will likely be used for general corporate purposes, which could include funding ongoing operations, capital expenditures, acquisitions, or refinancing existing debt. Investors should note the new maturities and coupon rates associated with these notes as they represent a material increase in the company's long-term debt obligations.

Key Highlights

  • 1Charter Communications is issuing $800 million of 5.375% Senior Secured Notes due 2048.
  • 2Charter Communications is also issuing $1.7 billion of 5.750% Senior Secured Notes due 2038.
  • 3The total principal amount of the new debt offering is $2.5 billion.
  • 4The notes are senior secured, indicating they are backed by specific company assets.
  • 5The underwriting agreement was entered into on April 3, 2018, with Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. acting as underwriters.
  • 6The filing includes the Underwriting Agreement as Exhibit 99.1 for detailed terms and conditions.

Frequently Asked Questions

Charter Communications is issuing a total of $2.5 billion in senior secured notes, comprised of $800 million in 5.375% notes due 2038 and $1.7 billion in 5.750% notes due 2048.

The 8-K filing does not explicitly state the use of proceeds. However, such debt issuances are typically used for general corporate purposes, which can include capital expenditures, funding operations, potential acquisitions, or refinancing existing debt.

The underwriters for this debt issuance are Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., acting as representatives for the several underwriters named in the agreement.

The new notes include $800 million principal amount of 5.375% Senior Secured Notes due 2038 and $1.7 billion principal amount of 5.750% Senior Secured Notes due 2048. They are senior secured obligations, meaning they are backed by specific collateral of the company.