Cox’s $6B Charter (CHTR) preferred units pay 6.875% coupon
Rhea-AI Filing Summary
Charter Communications, Inc. (CHTR) reported that Cox Communications Equity Holdings, Inc., a wholly owned subsidiary of Cox Enterprises, Inc., is a greater-than-10% beneficial owner through indirect holdings in Charter Communications Holdings, LLC as of August 19, 2026. These holdings consist of Class C Common Units exchangeable, in certain circumstances, for cash or, at Charter’s election, Class A Common Stock on a one-for-one basis, and Convertible Preferred Units that are convertible into additional Class C Common Units at a stated conversion rate. Cox Enterprises, Inc. is an indirect beneficial owner of the reported securities, and Cox Communications Equity Holdings, Inc. holds voting rights for the Class C Common Units and Convertible Preferred Units through one share of Charter Class C Common Stock.
Positive
- None.
Negative
- None.
Insider Trade Summary
2 transactions reported
Mixed
2 txns
Insider
COX ENTERPRISES INC ET AL, Cox Communications Equity Holdings, Inc.
Role
10% Owner | 10% Owner
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| holding | Class C Common Units of Charter Communications Holdings, LLC F2, F1 | -- | -- | -- |
| holding | Convertible Preferred Units of Charter Comms. Hldgs., LLC F3, F1 | -- | -- | -- |
Holdings After Transaction:
Class C Common Units of Charter Communications Holdings, LLC — 33,586,045 shares (Indirect, See Footnote);
Convertible Preferred Units of Charter Comms. Hldgs., LLC — 12,567,840 shares (Indirect, See Footnote)
Footnotes (3)
- F1. Cox Communications Equity Holdings, Inc., a Delaware corporation, acquired the Class C Common Units (the "Class C Common Units") and the Convertible Preferred Units (the "Convertible Preferred Units") of Charter Communications Holdings, LLC disclosed on this Form 3 on August 19, 2026. Cox Communications Equity Holdings, Inc. is a wholly owned subsidiary of Cox Enterprises, Inc. Cox Enterprises, Inc. is an indirect beneficial owner of the reported securities. Cox Communications Equity Holdings, Inc. is entitled to voting rights with respect to the Class C Common Units and the Convertible Preferred Units through its ownership of one share of Class C Common Stock, par value $0.001 per share of the Issuer.
- F2. The Class C Common Units owned by Cox Communications Equity Holdings, Inc. are exchangeable, in certain circumstances, for cash or, at the Issuer's election, Class A Common Stock of the Issuer on a one-for-one basis, subject to certain adjustments.
- F3. Each of the Convertible Preferred Units, which have an aggregate liquidation preference of $6.0 billion and 6.875% coupon, is convertible into 0.209464 of a Class C Common Unit, subject to certain adjustments, representing an initial conversion price of approximately $477.41 per Convertible Preferred Unit, subject to certain adjustments. The Class C Common Units owned by Cox Communications Equity Holdings, Inc. are exchangeable, in certain circumstances, for cash or, at the Issuer's election, Class A Common Stock of the Issuer on a one-for-one basis, subject to certain adjustments.
Key Figures
Underlying Class A Common Stock from Class C Common Units: 33,586,045 shares
Underlying Class A Common Stock from Convertible Preferred Units: 12,567,840 shares
Aggregate liquidation preference: $6.0 billion
+5 more
8 metrics
Underlying Class A Common Stock from Class C Common Units
33,586,045 shares
Exchangeable one-for-one for Issuer Class A Common Stock, subject to adjustments
Underlying Class A Common Stock from Convertible Preferred Units
12,567,840 shares
Represents Class A shares underlying Convertible Preferred Units via conversion into Class C Common Units
Aggregate liquidation preference
$6.0 billion
Applies to all Convertible Preferred Units reported
Coupon on Convertible Preferred Units
6.875%
Stated coupon rate on the Convertible Preferred Units
Initial conversion price per Convertible Preferred Unit
$477.41
Represents initial conversion price, subject to certain adjustments
Conversion ratio per Convertible Preferred Unit
0.209464 Class C Common Units
Each Convertible Preferred Unit converts into this amount of a Class C Common Unit, subject to adjustments
Total Class C Common Units underlying Class A stock
33,586,045 units
Exchangeable for Issuer Class A Common Stock on a one-for-one basis, subject to certain adjustments
Total Convertible Preferred Units underlying Class A stock
12,567,840 units
Convertible into Class C Common Units, then exchangeable into Class A Common Stock
Key Terms
Class C Common Units, Convertible Preferred Units, aggregate liquidation preference, coupon, +1 more
5 terms
Class C Common Units financial
"The Class C Common Units owned by Cox Communications Equity Holdings, Inc. are exchangeable"
Convertible Preferred Units financial
"Each of the Convertible Preferred Units, which have an aggregate liquidation preference"
Convertible preferred units are a type of ownership stake that pays holders priority on distributions (like a fixed income stream) but can be switched into common units or shares under agreed conditions. Think of them as a VIP ticket that guarantees earlier payouts yet can be exchanged for ordinary tickets if the owner wants a shot at bigger gains; investors care because conversion changes who controls the business, alters future earnings for common holders and can dilute existing ownership.
aggregate liquidation preference financial
"Convertible Preferred Units, which have an aggregate liquidation preference of $6.0 billion"
coupon financial
"Convertible Preferred Units, which have an aggregate liquidation preference of $6.0 billion and 6.875% coupon"
A coupon is the regular interest payment a bond issuer promises to make to bondholders, usually expressed as a percentage of the bond’s face value. It matters to investors because it provides predictable income like a steady paycheck and helps determine a bond’s market value and sensitivity to interest rate changes — higher coupons cushion price drops, while low coupons make bonds more sensitive to rate swings.
indirect beneficial owner financial
"Cox Enterprises, Inc. is an indirect beneficial owner of the reported securities"
FAQ
What insider ownership did the Cox entities report in this Form 3 for CHTR?
The filing shows Cox Communications Equity Holdings, Inc. as an indirect owner of Class C Common Units and Convertible Preferred Units of Charter Communications Holdings, LLC, all ultimately tied to Issuer Class A Common Stock, with Cox Enterprises, Inc. as an indirect beneficial owner.
What are the key terms of the Convertible Preferred Units tied to CHTR?
The Convertible Preferred Units have an aggregate liquidation preference of $6.0 billion and a 6.875% coupon. Each is convertible into 0.209464 of a Class C Common Unit, representing an initial conversion price of approximately $477.41 per Convertible Preferred Unit, subject to adjustments.
Are the Cox entities’ holdings in CHTR direct or indirect?
The holdings are reported as indirect. Cox Communications Equity Holdings, Inc. directly owns the units of Charter Communications Holdings, LLC, and Cox Enterprises, Inc. is described as an indirect beneficial owner of the reported securities.
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