8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Dec 5, 2019)

Filed December 5, 2019For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on December 5, 2019, to report on a significant debt issuance. On December 2, 2019, the company's operating subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., entered into an underwriting agreement for the issuance and sale of $1.3 billion in aggregate principal amount of 4.800% Senior Secured Notes due 2050. These new notes will be fungible and form part of the same series as the $1.5 billion of Senior Secured Notes previously issued on October 24, 2019. This offering aims to further strengthen the company's financial position and provide liquidity. The filing includes the Underwriting Agreement as an exhibit, detailing customary terms such as representations, warranties, covenants, and conditions to closing.

Key Highlights

  • 1Charter Communications issued $1.3 billion in 4.800% Senior Secured Notes due 2050.
  • 2The new notes are fungible with and part of the same series as previously issued Senior Secured Notes.
  • 3The issuance took place on December 2, 2019.
  • 4The company's operating subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., are the issuers.
  • 5CCO Holdings, LLC acts as the parent guarantor, with other subsidiary guarantors also party to the agreement.
  • 6The Underwriting Agreement was entered into with Deutsche Bank Securities Inc., Mizuho Securities USA LLC, and Morgan Stanley & Co. LLC as representatives for the underwriters.
  • 7The filing provides the Underwriting Agreement as an exhibit.

Frequently Asked Questions

While the 8-K does not explicitly state the use of proceeds, such debt issuances are typically undertaken to fund general corporate purposes, capital expenditures, potential acquisitions, or to refinance existing debt. For investors, it signals the company's strategy to secure long-term financing.

This issuance increases Charter's total debt. Investors should review the company's overall debt levels, debt-to-equity ratio, and interest coverage ratios in subsequent financial reports to assess the impact on financial leverage and risk.

The notes carry a coupon rate of 4.800% and mature in 2050. They are secured and are part of the same series as previously issued notes, indicating they share the same terms regarding covenants and collateral.

The issuers are Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. CCO Holdings, LLC is the parent guarantor. The underwriters are represented by Deutsche Bank Securities Inc., Mizuho Securities USA LLC, and Morgan Stanley & Co. LLC.