Published on 12/4/2019 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Charter details $1.3 billion reopening of 4.8% secured notes due 2050 at 101.964
By Cristal Cody
Tupelo, Miss., Dec. 4 – Charter Communications, Inc. priced a $1.3 billion tap of its 4.8% senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) at 101.964 to yield 4.677%, according to additional details in an FWP filing with the Securities and Exchange Commission.
The notes priced on Monday at a spread of Treasuries plus 240 basis points, tighter than initial talk in Treasuries plus 255 bps area.
Subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. were the issuers.
Bookrunners were Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC.
Charter originally sold the notes in a $1.5 billion offering on Oct. 15 at 99.436 to yield 4.836% and a spread of Treasuries plus 260 bps. The total outstanding is now $2.8 billion.
The bonds are guaranteed by all of the issuers’ subsidiaries that guarantee the obligations of Charter Communications Operating, LLC under the company’s credit agreement.
Proceeds will be used for general corporate purposes, including potential buybacks of class A common stock or common units and debt repayment, including the repayment of Charter’s 3.579% senior secured notes due 2020.
The broadband communications company is based in Stamford, Conn.
| Issuers: | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp.
|
| Guarantors: | Subsidiaries that issue or guarantee obligations of Charter Communications Operating, LLC under a credit agreement
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| Amount: | $1.3 billion reopening
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| Description: | Senior secured notes
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| Maturity: | March 1, 2050
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| Bookrunners: | Deutsche Bank Securities Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., BofA Securities, Inc., Credit Suisse Securities (USA) 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 Securities (USA) Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., LionTree Advisors LLC, R. Seelaus & Co., LLC, Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP
|
| Coupon: | 4.8%
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| Price: | 101.964
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| Yield: | 4.677%
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| Spread: | Treasuries plus 240 bps
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| Call features: | Make-whole call before Sept. 1, 2049 at price equal to par and Treasuries plus 40 bps; thereafter at par
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| Trade date: | Dec. 2
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| Settlement date: | Dec. 16
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 255 bps area
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| Total outstanding: | $2.8 billion, including $1.5 billion of notes priced Oct. 15 at 99.436 to yield 4.836%, or Treasuries plus 260 bps
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