By Cristal Cody
Tupelo, Miss., Sept. 11 – Charter Communications, Inc. subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. priced $2 billion of senior secured notes (Ba1/BBB-/BBB-) in a two-part offering on Monday, a source said.
The company sold $1.25 billion of new notes due March 15, 2028 at a spread of 210 basis points over Treasuries. The notes were talked to price in the 215 bps area.
The company also priced a $750 million add-on to its 5.375% senior secured notes due May 1, 2047 at a Treasuries plus 270 bps spread, on the tight side of spread guidance in the 275 bps area.
The company originally sold $1.25 billion of the 30-year notes at 99.968 to yield 5.377%, or a 235 bps spread to Treasuries, on March 30. The total outstanding now is $2 billion.
The active bookrunners were BofA Merrill Lynch and Citigroup Global Markets Inc. Passives were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes, including potential buybacks of class A common stock or common units.
Charter is a Stamford, Conn.-based broadband communications company.
| Issuers: | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp.
|
| Amount: | $2 billion
|
| Description: | Senior secured notes
|
| Bookrunners: | BofA Merrill Lynch and Citigroup Global Markets Inc. (active) Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC and Wells Fargo Securities LLC (passive)
|
| Trade date: | Sept. 11
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10.5-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 15, 2028
|
| Coupon: | 4.2%
|
| Spread: | Treasuries plus 210 bps
|
| Price guidance: | Treasuries plus 215 bps area
|
|
|
| 30-year notes
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| Amount: | $750 million reopening
|
| Maturity: | May 1, 2047
|
| Coupon: | 5.375%
|
| Spread: | Treasuries plus 270 bps
|
| Price guidance: | Treasuries plus 275 bps area
|
| Total outstanding: | $2 billion, including $1.25 billion of notes priced on March 30 at 99.968 to yield 5.377% and a 235 bps spread to Treasuries
|
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