Charter Communications Announces Senior Secured Note Offering to Optimize Capital Structure
- Charter Communications plans to offer senior secured notes to repay debt and potentially buy back Class A common stock.
- The offering will be managed by Citigroup, J.P. Morgan, and Morgan Stanley, subject to market conditions.
- Charter aims to enhance its capital structure and maintain compliance with regulatory standards during this financial initiative.
Charter Communications Moves Forward with Senior Secured Note Offering
Charter Communications, Inc. announces its intention to offer senior secured fixed-rate notes through its subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. This strategic initiative aims to leverage the net proceeds for various corporate purposes, which include repaying certain debt obligations, specifically the 6.150% Senior Secured Notes due 2026. Additionally, the company indicates potential buybacks of Charter Class A common stock and plans to cover related fees and expenses. This move reflects Charter's ongoing commitment to optimizing its capital structure and enhancing shareholder value.
The offering will be conducted under an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (SEC), with the execution subject to prevailing market conditions. Notably, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC are appointed as Joint Book-Running Managers for this transaction, underscoring the importance of this capital-raising effort. Charter emphasizes that the announcement does not constitute an offer to sell or a solicitation to buy the notes in any jurisdictions where such actions would be unlawful, maintaining compliance with regulatory standards.
In addition to these financial maneuvers, Charter Communications remains a leader in the broadband and cable industry, providing services to over 57 million homes and businesses across 41 states under its Spectrum brand. The company's robust suite of offerings includes Spectrum Internet®, TV, Mobile, and Voice, all supported by a dedicated U.S.-based workforce and an advanced communications network. The planned redemption of the 2026 Notes will be communicated through a notice of redemption, adhering to the governing indenture of those notes, ensuring a transparent approach to its financial commitments.
This note offering is poised to play a significant role in Charter's ongoing efforts to streamline its finances and reinforce its competitive position in the rapidly evolving telecommunications landscape.
