8-KMaterial AgreementsFinancial EventsOther Events+1

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Oct 30, 2019)

Filed October 30, 2019For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on October 30, 2019, detailing several significant financing activities. The company, through its subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp., issued an additional $500 million of 4.750% Senior Notes due 2030, bringing the total outstanding of this series to $1.85 billion. Concurrently, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued $1.50 billion of 4.800% Senior Secured Notes due 2050. In addition to these debt issuances, the company also amended its Amended and Restated Credit Agreement. This amendment involved converting existing Term B and Term A loans into new tranches with varying maturity dates and interest rate options (Eurodollar or ABR), and extending the maturity and reducing pricing on a significant portion of its revolving credit facility. These actions indicate proactive debt management and a strategic approach to capital structure by Charter Communications.

Key Highlights

  • 1Charter Communications, through its subsidiaries, issued an additional $500 million in 4.750% Senior Notes due 2030.
  • 2The new 2030 Notes are fungible with previously issued notes of the same series, bringing the total outstanding to $1.85 billion.
  • 3Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued $1.50 billion in 4.800% Senior Secured Notes due 2050.
  • 4The 2050 Notes are secured by a pari passu, first priority security interest in the issuers' and guarantors' assets, subject to permitted liens.
  • 5An amendment to the credit agreement restructured existing Term B and Term A loans into new tranches with adjusted maturity dates and interest rates.
  • 6The revolving credit facility maturity was extended, and its pricing was reduced for approximately $4.5 billion of commitments.
  • 7The company entered into a Registration Rights Agreement requiring it to register the new 2030 Notes within 450 days or face additional interest payments.

Frequently Asked Questions

Charter Communications, through its subsidiaries, issued a total of $2.0 billion in new debt, comprising $500 million of 4.750% Senior Notes due 2030 and $1.50 billion of 4.800% Senior Secured Notes due 2050.

The additional 4.750% Senior Notes due 2030 were issued to supplement the existing notes of the same series, effectively increasing the total outstanding principal amount of these notes to $1.85 billion. These notes are general unsecured obligations of the CCOH Issuers.

The amendment restructured existing loans and extended the maturity of a significant portion of the revolving credit facility. Specifically, it converted Term B and Term A loans into new tranches (Term B-1, Term B-2, Term A-4) with different maturity dates and interest rate options, and adjusted the terms of the revolving credit facility to potentially lower borrowing costs and extend repayment timelines.

Yes, the 4.800% Senior Secured Notes due 2050 are senior secured obligations and are guaranteed on a senior secured basis by the Parent Guarantor and other subsidiary guarantors. They are secured by a pari passu, first priority security interest in the assets of the CCO Issuers and the Guarantors that also secure obligations under the credit agreement.