Summary
Charter Communications, Inc. (CHTR) has announced through its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., the successful issuance and sale of a substantial amount of new debt. Specifically, the company has raised $1.75 billion through 7.000% Senior Notes due 2033 and $1.25 billion through 7.375% Senior Notes due 2036, totaling $3.0 billion in aggregate principal amount. These notes were offered to qualified institutional buyers and non-U.S. persons in reliance on Rule 144A and Regulation S, respectively, indicating a private placement rather than a public offering at this stage. The proceeds from this issuance are not explicitly stated in this 8-K filing, but such debt offerings are typically used for general corporate purposes, refinancing existing debt, or funding strategic initiatives. The new notes are unsecured general obligations of the CCOH Issuers and are not guaranteed by Charter Communications, Inc. The filing details the terms of the indentures governing these notes, including interest payment dates, redemption provisions, covenants restricting further debt incurrence and restricted payments, and provisions related to change of control events and defaults.
Key Highlights
- 1Charter Communications' subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., have issued $1.75 billion in 7.000% Senior Notes due 2033 and $1.25 billion in 7.375% Senior Notes due 2036.
- 2The total aggregate principal amount of the new debt issuance is $3.0 billion.
- 3The notes were sold to qualified institutional buyers and non-U.S. persons via private placement under Rule 144A and Regulation S.
- 4The notes are general unsecured obligations of the CCOH Issuers and are not guaranteed by Charter Communications, Inc.
- 5The indenture includes covenants that limit the CCOH Issuers' ability to incur additional debt, pay dividends, make restricted payments, and engage in certain other corporate actions.
- 6A change of control triggering event will give holders the right to require repurchase of the notes at 101% of the principal amount.
- 7An Exchange and Registration Rights Agreement has been entered into, requiring the CCOH Issuers to register the notes under the Securities Act within 450 days or face additional interest payments.