8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Jul 1, 2019)

Filed July 1, 2019For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on July 1, 2019, reporting on a significant debt issuance that occurred on June 25, 2019. The company, through its operating subsidiaries, successfully entered into an underwriting agreement to issue and sell $1.25 billion in aggregate principal amount of 5.125% Senior Secured Notes due 2049. This debt offering was managed by major financial institutions including Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC, acting as underwriters. This issuance indicates Charter's strategy to manage its capital structure and potentially fund ongoing operations, infrastructure investments, or acquisitions. Investors should note the details of the debt, specifically its senior secured nature and long-term maturity, which can provide financial flexibility but also increase leverage. The filing incorporates the Underwriting Agreement by reference, offering further details on the terms and conditions of this transaction.

Key Highlights

  • 1Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued $1.25 billion in aggregate principal amount of 5.125% Senior Secured Notes due 2049.
  • 2The debt issuance occurred on June 25, 2019, with the filing made on July 1, 2019.
  • 3The notes are senior secured debt, implying a priority claim on assets in the event of default.
  • 4The maturity date for these notes is 2049, indicating a long-term financing strategy.
  • 5Major underwriters for the offering included Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.
  • 6The Underwriting Agreement contains standard representations, warranties, covenants, conditions to closing, indemnification, and termination provisions.

Frequently Asked Questions

This 8-K filing announces the details of a significant debt issuance by Charter Communications, Inc. through its operating subsidiaries. Specifically, it reports on the company's agreement to issue and sell $1.25 billion of 5.125% Senior Secured Notes due 2049.

The company issued $1.25 billion in aggregate principal amount of 5.125% Senior Secured Notes. These notes have a maturity date of 2049 and are classified as senior secured debt.

Issuing long-term debt like these senior secured notes can provide Charter with significant capital for various strategic purposes, such as funding capital expenditures, expanding network infrastructure, pursuing acquisitions, or refinancing existing debt. The 'senior secured' designation offers the company favorable borrowing terms due to the collateral backing the debt, while the long maturity provides financial stability and predictability over an extended period.

Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. were the issuers. CCO Holdings, LLC served as the parent guarantor. The underwriters, acting as representatives for the offering, were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.