8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Jan 17, 2019)

Filed January 17, 2019For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced a significant debt financing event through its operating subsidiaries. On January 14, 2019, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. entered into an underwriting agreement to issue and sell a combined $2.0 billion in senior secured notes. This issuance includes $1.25 billion of 5.050% Senior Secured Notes due 2029 and $750 million of 5.750% Senior Secured Notes due 2048. The new debt offering is structured as senior secured notes, indicating they are backed by collateral, which typically lowers borrowing costs and risk for investors. The 2048 Notes will be fungible with existing notes of the same series issued in April 2018. This strategic move suggests the company is actively managing its capital structure, potentially to fund operations, capital expenditures, or refinance existing debt.

Key Highlights

  • 1Charter Communications issuing $2.0 billion in new senior secured notes.
  • 2Issuance comprises $1.25 billion of 5.050% Senior Secured Notes due 2029.
  • 3Issuance comprises $750 million of 5.750% Senior Secured Notes due 2048.
  • 4The 2048 Notes will be fungible with the existing 5.750% Senior Secured Notes due 2048 issued in April 2018.
  • 5The debt offering was facilitated through an underwriting agreement with Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. as representatives.
  • 6This event is classified under 'Other Events' (Item 8.01) in the 8-K filing.
  • 7The filing was made on January 17, 2019, detailing an agreement dated January 14, 2019.

Frequently Asked Questions

This 8-K filing is primarily to report on an 'Other Event' (Item 8.01), specifically detailing the underwriting agreement entered into by Charter Communications' operating subsidiaries for the issuance of $2.0 billion in new senior secured notes.

Charter Communications is issuing $1.25 billion of 5.050% Senior Secured Notes due 2029 and $750 million of 5.750% Senior Secured Notes due 2048. These are senior secured notes, meaning they are backed by collateral.

The filing does not explicitly state the purpose for the debt issuance. However, such issuances are typically used for general corporate purposes, funding capital expenditures, acquisitions, refinancing existing debt, or managing the company's overall capital structure.

The issuance of additional 5.750% Senior Secured Notes due 2048, which will be fungible with the existing series, could potentially impact the market price of those existing notes due to increased supply. For holders of the new notes, they are senior secured obligations, ranking equally with other senior secured debt.