Published on 4/15/2020 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Charter Communications details $3 billion of notes in two tranches
By Devika Patel
Knoxville, Tenn., April 15 – Charter Communications, Inc. subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. offered further details about a $3 billion sale of senior secured notes (Ba1/BBB-/BBB-) that priced in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
A $1.6 billion tranche of 2.8% notes due April 1, 2031 priced at a spread of Treasuries plus 210 basis points. These notes priced at 99.561 to yield 2.847%.
The 11-year notes were talked to print in the Treasuries plus 250 bps area.
The company sold $1.4 billion of 3.7% notes due April 1, 2051 at a 235 bps over Treasuries spread. These notes priced at 99.217 to yield 3.743%.
The 31-year notes were talked at the 275 bps spread area.
BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Charter is a Stamford, Conn.-based broadband communications company.
| Issuers: | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp.
|
| Amount: | $3 billion
|
| Description: | Senior secured notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA 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., LionTree Advisors LLC, Academy Securities, Inc., Loop Capital Markets LLC, MFR Securities, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | April 14
|
| Settlement date: | April 17
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 11-year notes
|
| Amount: | $1.6 billion
|
| Maturity: | April 1, 2031
|
| Coupon: | 2.8%
|
| Price: | 99.561
|
| Yield: | 2.847%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole call at Treasuries plus 35 bps until Jan. 1, 2031, then a par call
|
| Price guidance: | Treasuries plus 250 bps area
|
|
|
| 31-year notes
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| Amount: | $1.4 billion
|
| Maturity: | April 1, 2051
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| Coupon: | 3.7%
|
| Price: | 99.217
|
| Yield: | 3.743%
|
| Spread: | Treasuries plus 235 bps
|
| Call: | Make-whole call at Treasuries plus 40 bps until Oct. 1, 2050, then a par call
|
| Price guidance: | Treasuries plus 275 bps area
|
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