01—Abstract
Summary
Summary of the 8-K filed June 29, 2023. Cited figures are marked; the original filing is the authoritative source.
Charter Communications, Inc. (CHTR) has filed an 8-K report to address the cessation of U.S. Dollar LIBOR and its impact on outstanding debt.
Specifically, the company's Senior Secured Floating Rate Notes due 2024 will transition from three-month USD LIBOR to Three-Month CME Term SOFR as the benchmark interest rate. This change is being implemented in accordance with the Adjustable Interest Rate (LIBOR) Act and its related regulations. Investors holding these notes should be aware that interest rate calculations will now be based on a new benchmark, effective for interest periods after June 30, 2023.
The transition includes a tenor spread adjustment as mandated by the LIBOR Act, ensuring a consistent and regulated approach to this significant financial transition. This proactive measure by Charter Communications aims to mitigate risks associated with the discontinuation of LIBOR and maintain financial stability for its debt obligations.
02—Key points
Key Highlights
- Cessation of USD LIBOR: The report addresses the upcoming discontinuation of U.S. Dollar LIBOR rates after June 30, 2023.
- Benchmark Transition: Charter Communications' Senior Secured Floating Rate Notes due 2024 will switch benchmarks.
- New Benchmark Selected: Three-Month CME Term SOFR will replace three-month USD LIBOR for interest rate calculations.
- Regulatory Compliance: The transition is being executed in accordance with the Adjustable Interest Rate (LIBOR) Act and Federal Reserve regulations.
- Trustee Action: The Bank of New York Mellon Trust Company, N.A. (as trustee) has made the benchmark selection.
- Interest Period Impact: The new benchmark will apply to interest periods with determination dates occurring after June 30, 2023.
- Spread Adjustment Included: A tenor spread adjustment for three-month LIBOR will be incorporated as per the LIBOR Act.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
The main purpose of this 8-K filing is to inform investors about Charter Communications' plan to transition its Senior Secured Floating Rate Notes due 2024 away from the soon-to-be-discontinued U.S. Dollar LIBOR benchmark to a new benchmark, Three-Month CME Term SOFR, in compliance with regulatory changes.
Which specific debt instrument is affected by this change?
The debt instrument affected is the outstanding Senior Secured Floating Rate Notes due 2024, issued by Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.
What is the new benchmark interest rate for these notes?
The new benchmark interest rate selected is Three-Month CME Term SOFR. This will replace the three-month USD LIBOR as the benchmark for establishing the interest rate on the Floating Rate Notes.
When will this change in benchmark interest rate take effect?
The new benchmark will be used for calculating the amount of interest payable on the Floating Rate Notes for interest periods with interest determination dates occurring after June 30, 2023.
04—Continue