Charter Prices $2.0 Billion Senior Secured Notes

Rhea-AI Summary

Charter Communications (NASDAQ: CHTR) has announced the pricing of $2.0 billion in senior secured notes through its subsidiaries. The offering consists of $1.25 billion in notes due 2035 with a 5.850% interest rate and $750 million in notes due 2055 with a 6.700% interest rate.

The proceeds will be used for general corporate purposes, including repaying existing debt (6.150% Senior Secured Notes due 2026), funding potential buybacks of Charter Class A common stock and Charter Communications Holdings LLC common units. The offering is expected to close on September 2, 2025.

Positive

• Strategic debt refinancing with longer maturities (2035 and 2055)
• Potential stock buyback program indicates confidence in company value
• Successfully secured $2.0B in new funding despite high interest rate environment

Negative

• Higher interest rates on new notes (5.850% and 6.700%) compared to existing 2026 notes (6.150%)
• Increased long-term debt obligations with $2.0B additional notes

Insights

Fixed Income Analyst

Charter's $2B note issuance provides flexibility for debt refinancing and buybacks at reasonable rates despite the high-yield environment.

Charter Communications has priced a $2 billion secured notes offering split between $1.25 billion of 2035 notes at 5.85% and $750 million of 2055 notes at 6.7%. These rates reflect Charter's strong credit profile, securing long-term funding at relatively favorable terms in today's elevated interest rate environment. The company intends to use proceeds primarily to refinance existing 6.15% notes due in 2026, effectively extending its debt maturity profile while maintaining a similar interest burden.

The dual-tranche approach is strategically sound, with the majority allocated to the 10-year notes balancing interest expense against maturity horizon. The 30-year tranche, while carrying a higher rate, locks in long-term capital that helps smooth Charter's overall debt maturity ladder. The slight discount to par (99.932% and 99.832%) is nominal and standard for institutional offerings.

What's particularly noteworthy is the allocation for potential share repurchases, signaling management's continued confidence in the stock's value proposition despite challenges in the cable sector. This offering demonstrates Charter's ongoing access to debt markets and ability to maintain financial flexibility while potentially returning capital to shareholders. The involvement of three major investment banks as joint book-runners further underscores the offering's institutional appeal.

STAMFORD, Conn., Aug. 18, 2025 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, "Charter") today announced that its subsidiaries, Charter Communications Operating, LLC ("CCO") and Charter Communications Operating Capital Corp. ("CCO Capital," and together with CCO, the "Issuers"), have priced $2.0 billion in aggregate principal amount of notes consisting of the following securities:

• $1.25 billion in aggregate principal amount of Senior Secured Notes due 2035 (the "2035 Notes"). The 2035 Notes will bear interest at a rate of 5.850% per annum and will be issued at a price of 99.932% of the aggregate principal amount.
• $750 million in aggregate principal amount of Senior Secured Notes due 2055 (the "2055 Notes" and, together with the 2035 Notes, the "Notes"). The 2055 Notes will bear interest at a rate of 6.700% per annum and will be issued at a price of 99.832% of the aggregate principal amount.

The Issuers intend to use the net proceeds from this offering for general corporate purposes, including to repay certain indebtedness, including the Issuers' 6.150% Senior Secured Notes due 2026 (the "2026 Notes"), to fund potential buybacks of Charter Class A common stock and common units of Charter Communications Holdings, LLC and to pay related fees and expenses. Charter expects to close the offering of the Notes on September 2, 2025, subject to customary closing conditions.

The offering and sale of the Notes were made pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC").

Citigroup Global Markets Inc., J.P. Morgan Securities LLC 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 August 18, 2025 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 Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, Telephone: (800) 831-9146, E-mail: prospectus@citi.com, or by contacting J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, Attn: Prospectus Department, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at JPMorganPostSale@broadridge.com, or by contacting Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, New York, NY 10014.

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, nor is it an offer to purchase, or the solicitation of an offer to sell the Notes in any jurisdiction in which such offer, solicitation, or sale is unlawful. The intended redemption of the 2026 Notes will be made solely pursuant to a notice of redemption that will be delivered pursuant to the indenture governing the 2026 Notes, and nothing contained in this news release constitutes a notice of redemption of the 2026 Notes.

About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, supported by a 100% U.S.-based workforce, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet^®, TV, Mobile and Voice.

More information about Charter can be found at corporate.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the potential offering. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," "tentative," "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others. 

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.

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SOURCE Charter Communications, Inc.

FAQ

What is the size and structure of Charter Communications' (CHTR) new notes offering?

Charter priced $2.0 billion in senior secured notes, split between $1.25 billion due 2035 at 5.850% interest and $750 million due 2055 at 6.700% interest.

How will Charter Communications (CHTR) use the proceeds from the $2.0B notes offering?

The proceeds will be used to repay existing debt (2026 Notes), fund potential stock buybacks of Charter Class A common stock and Charter Communications Holdings LLC common units, and pay related expenses.

When will Charter Communications' (CHTR) new $2.0B notes offering close?

The notes offering is expected to close on September 2, 2025, subject to customary closing conditions.

What are the interest rates for Charter Communications' (CHTR) new notes?

The 2035 Notes will bear interest at 5.850% per annum, while the 2055 Notes will bear interest at 6.700% per annum.

Who are the joint book-running managers for Charter Communications' (CHTR) notes offering?

Citigroup Global Markets, J.P. Morgan Securities, and Morgan Stanley & Co. served as Joint Book-Running Managers for the offering.