Charter prices USD 1.5bn senior secured notes

Charter Communications, Inc. (NASDAQ: CHTR) subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. (collectively, the “Issuers”) have priced USD 1.5 billion in aggregate principal amount of notes, the company said.

The notes consist of the following securities:

USD 1.0 billion in aggregate principal amount of senior secured notes due February 2028 (the “2028 Notes”). These notes will bear interest at a rate of 3.750% per annum and will be issued at a price of 99.166% of the aggregate principal amount.

USD 500 million in aggregate principal amount of senior secured notes due May 2047 (the “Follow-on Notes,” and together with the 2028 Notes, the “Notes”). The Follow-on Notes will bear interest at a rate of 5.375% per annum and will be issued at a price of 106.529% of the aggregate principal amount. The Follow-on Notes will form a part of the same series as the 5.375% Senior Secured Notes issued on April 20, 2017 in the aggregate principal amount of USD 1.25 billion.

The Notes will result in proceeds of approximately USD 1.5 billion after deducting underwriting discounts, commissions and new issue discount.

Charter intends to use the net proceeds from the sale of the Notes to pay related fees and expenses and for general corporate purposes, including potential buybacks of the Class A common stock of Charter or common units of Charter Communications Holdings, LLC. Charter expects to close the offering of the Notes on July 6, 2017, subject to customary closing conditions.

Charter (NASDAQ: CHTR) is a broadband communications company and the second largest cable operator in the United States.