Spectrum parent Charter Communications said following Tuesday’s Closing Bell on Wall Street that its subsidiaries, CCO Holdings LLC and CCO Holdings Capital Corp., have closed on $1.35 billion in aggregate principal amount of senior unsecured notes due 2030.
The Notes bear interest at a rate of 4.750% per annum and were issued at a price of 100.000% of the aggregate principal amount.
The Notes were sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S.
Concurrently, the subsidiaries announced the completion of a previously announced tender offer to purchase any and all of its outstanding $500 million 5.250% senior notes due 2021. The Tender Offer expired at 5pm Eastern on Sept. 27.
In total, $60,628,000 or 12.13% of the 2021 Notes were validly tendered prior to the Expiration Time. The conditions to the Tender Offer have been satisfied and Charter has accepted for purchase all 2021 Notes validly tendered and not validly withdrawn at or prior to the Expiration Time. Payment for the 2021 Notes validly tendered and accepted for payment is expected to be made today with the proceeds of Charter’s previously announced offering of senior notes.
Charter has conditionally called for redemption all of the 2021 Notes that were not tendered pursuant to the Tender Offer and remain outstanding after the Expiration Time, on October 18, 2019, at the redemption price of $1,000.00 for every $1,000 principal amount of 2021 Notes, plus accrued and unpaid interest to, but not including, the date of redemption. Following the redemption, no principal amount of 2021 Notes will remain outstanding.
Charter issued a conditional notice of partial redemption to redeem $850 million of its $1.0 billion outstanding 5.750% Senior Notes due 2024 (the “2024 Notes” and, together with the 2021 Notes, the “Notes”) on October 18, 2019, at a redemption price of $1,019.17 for every $1,000 principal amount of 2024 Notes, plus accrued and unpaid interest to, but not including, the date of redemption. Following the redemption, $150 million principal amount of 2024 Notes will remain outstanding.
The Tender Offer was made pursuant to Charter’s Offer to Purchase dated September 18, 2019. BofA Merrill Lynch acted as Dealer Manager for the Tender Offer. This press release is neither an offer to purchase nor a solicitation to sell any of the Notes nor is it a solicitation for acceptance of the Tender Offer and does not constitute a notice of redemption for the Notes.