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CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Jul 3, 2018)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed July 3, 2018
Period End
June 28, 2018
Security
CHTR
In the record · 2016–202610-K1110-Q328-K179

CHTR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 179 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Sep ’17Sep ’17
  2. Material agreement8-K · Jul ’20Jul ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed July 3, 2018. Cited figures are marked; the original filing is the authoritative source.

Charter Communications, Inc. (CHTR) filed an 8-K on July 3, 2018, to report on a significant debt issuance.

On June 28, 2018, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., along with parent and subsidiary guarantors, entered into an Underwriting Agreement to issue and sell $400 milliona in Senior Secured Floating Rate Notes due 2024 and $1.1 billion in 4.500% Senior Secured Notes due 2024. This debt issuance provides Charter with substantial capital, likely for ongoing operational needs, capital expenditures, or potential strategic initiatives.

Investors should note the terms of these notes, including the floating rate aspect of the 2024 notes and the fixed 4.500%b rate for the other series, as these will impact the company's future interest expense and financial leverage. The filing also includes customary representations, warranties, covenants, and termination provisions common in such underwriting agreements.

02—Key points

Key Highlights

  1. Charter Communications successfully completed a significant debt offering on June 28, 2018.
  2. Total debt issued amounts to $1.5 billion ($400 million Floating Rate Notes + $1.1 billion Fixed Rate Notes).
  3. The notes are Senior Secured, indicating a priority claim on certain company assets in case of default.
  4. The Senior Secured Floating Rate Notes are due in 2024.
  5. The 4.500% Senior Secured Notes are also due in 2024.
  6. The underwriting agreement was entered into with prominent financial institutions, including Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.
  7. The filing includes standard contractual provisions such as representations, warranties, covenants, and indemnification obligations.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this debt issuance?

    While the 8-K does not explicitly state the use of proceeds, debt issuances of this magnitude are typically used to fund ongoing operations, capital expenditures, spectrum acquisitions, refinancing existing debt, or for general corporate purposes.

  2. What are the key terms of the new notes?

    The company issued $400 million in Senior Secured Floating Rate Notes due 2024 and $1.1 billion in 4.500% Senior Secured Notes due 2024. The floating rate notes will have interest payments that adjust based on market rates, while the fixed rate notes will pay a consistent 4.500% interest.

  3. What does 'Senior Secured' mean for these notes?

    'Senior Secured' means these notes have a higher priority claim on the company's assets compared to unsecured debt. In the event of bankruptcy or liquidation, holders of senior secured debt are typically repaid before holders of unsecured debt.

  4. Who are the main parties involved in this transaction?

    The issuers are Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. CCO Holdings, LLC is the parent guarantor, supported by other subsidiary guarantors. The underwriters are represented by Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC.

04—Continue

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