Published on 2/3/2020 in the Prospect News High Yield Daily.
New Issue: Charter prices $1.65 billion 10.5-year notes at par to yield 4½%
By Paul A. Harris
Portland, Ore., Feb. 3 – Charter Communications Inc. priced a $1.65 billion issue of CCO Holdings LLC/CCO Holdings Capital Corp. 10.5-year senior notes (B1/BB/BB+) at par to yield 4½% in a quick-to-market Monday trade, according to a market source.
The yield printed at the tight end of the 4½% to 4 5/8% yield talk.
Joint bookrunners are Deutsche Bank Securities Inc. (left lead), Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG. RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC.
The Stamford, Conn.-based broadband communications company plans to use the proceeds for general corporate purposes, including debt repayment, as well as potential buybacks of Charter class A common stock or Charter Holdings common units.
| Issuers: | CCO Holdings LLC and CCO Holdings Capital Corp.
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| Amount: | $1.65 billion
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| Maturity: | Aug. 15, 2030
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| Securities: | Senior notes
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| Joint bookrunners: | Deutsche Bank Securities Inc. (left lead), Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Mizuho Securities USA LLC, BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, MUFG. RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., SunTrust Robinson Humphrey Inc., Credit Agricole CIB, U.S. Bancorp Investments Inc., Bancroft Capital LLC, Cabrera Capital Markets LLC, LionTree Advisors LLC, R. Seelaus & Co. LLC and Siebert Williams Shank & Co. LLC
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| Coupon: | 4½%
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| Price: | Par
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| Yield: | 4½%
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| Spread: | 298 bps
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| First call: | Feb. 15, 2025 at 102.25
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| Trade date: | Feb. 3
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| Settlement date: | Feb. 18
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| Ratings: | Moody's: B1
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| S&P: BB
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| Fitch: BB+
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 4½% to 4 5/8%
|
| Marketing: | Drive-by
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