Charter Closes $3.0 Billion Senior Secured Notes
Rhea-AI Summary
Charter Communications (NASDAQ: CHTR) announced the successful closing of $3.0 billion in Senior Secured Notes through its subsidiaries. The offering includes $1.5 billion in 6.100% Senior Secured Notes due 2029, and $1.5 billion in 6.550% Senior Secured Notes due 2034.
The 2029 Notes were issued at 99.944% of their principal value, while the 2034 Notes were issued at 99.755%. Barclays Capital, Citigroup Global Markets, and Morgan Stanley acted as Joint Book-Running Managers.
The issuance was conducted through an automatic shelf registration statement filed with the SEC. Charter Communications provides broadband and cable services to over 32 million customers in 41 states under the Spectrum brand.
Positive
- Successful closing of $3.0 billion in Senior Secured Notes.
- Notes due 2029 bear 6.100% interest; 2034 notes bear 6.550% interest.
- Issued at near full value: 99.944% for 2029 Notes, 99.755% for 2034 Notes.
- Participation of reputable financial institutions: Barclays, Citigroup, and Morgan Stanley.
- Funds raised to support business operations and growth.
- Charter serves 32 million customers across 41 states, indicating a strong customer base.
Negative
- Interest rates on Notes are relatively high: 6.100% for 2029 and 6.550% for 2034, indicating higher borrowing costs.
- Potential added debt burden on Charter’s balance sheet.
- Issuing at less than full value may indicate market demand issues.
News Market Reaction – CHTR
On the day this news was published, CHTR declined 2.29%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
$1.5 billion 6.100% per annum and were issued at a price of99.944% of the aggregate principal amount.$1.5 billion 6.550% per annum and were issued at a price of99.755% of the aggregate principal amount.
The Notes were issued pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission ("SEC").
Barclays Capital Inc., Citigroup Global Markets Inc. and Morgan Stanley & Co. LLC were Joint Book-Running Managers for the senior secured notes offering. The offering was made only by means of a prospectus supplement dated May 9, 2024 and the accompanying base prospectus, copies of which, when available, may be obtained on the SEC's website at www.sec.gov or by contacting Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This news release is neither an offer to sell nor a solicitation of an offer to buy the Notes and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.
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SOURCE Charter Communications, Inc.