Summary
Charter Communications, Inc. (CHTR) filed an 8-K on March 15, 2022, to report the successful issuance and sale of $3.5 billion in aggregate principal amount of senior secured notes. This issuance includes $1.0 billion of 4.400% Senior Secured Notes due 2033, $1.5 billion of 5.250% Senior Secured Notes due 2053, and $1.0 billion of 5.500% Senior Secured Notes due 2063. The notes are senior secured obligations of Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., and are guaranteed on a senior secured basis by CCO Holdings, LLC and other subsidiary guarantors. This debt issuance, facilitated through an automatic shelf registration statement and a prospectus supplement, provides significant capital for the company. The secured nature of these notes means they are backed by a first-priority security interest in the issuers' and guarantors' assets, subject to certain permitted liens. Investors should note the varying interest rates and maturity dates, as well as the early redemption options and standard covenants and events of default outlined in the Indenture.
Key Highlights
- 1Issuance of $3.5 billion in aggregate principal amount of senior secured notes across three tranches: 2033, 2053, and 2063 maturities.
- 2The notes carry coupon rates of 4.400% (2033), 5.250% (2053), and 5.500% (2063).
- 3The issuance is backed by a supplemental indenture to an existing base indenture, with guarantees from CCO Holdings, LLC and other subsidiaries.
- 4The notes are secured obligations, with a first-priority security interest in the issuers' and guarantors' assets.
- 5The company utilized an automatic shelf registration statement and a prospectus supplement for the offering.
- 6The Indenture includes provisions for early redemption with make-whole premiums prior to stated maturity dates.
- 7Customary covenants and events of default are detailed in the Indenture, including limitations on liens, asset sales, and mergers.