Published on 10/15/2019 in the Prospect News High Yield Daily.
New Issue: Charter prices $500 million tap of 4¾% notes due 2030 at 101.25 to yield 4.597%
By Paul A. Harris
Portland, Ore., Oct. 15 – Charter Communications, Inc. priced a $500 million fungible add-on to the CCO Holdings, LLC/CCO Holdings Capital Corp. 4¾% senior notes due March 1, 2030 (Ba1/BB/BB+) at 101.25 to yield 4.597% in a quick-to-market Tuesday trade, according to an informed source.
The reoffer price came at the rich end of price talk in the 101 area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC.
The Stamford, Conn.-based telecommunications and mass media company plans to use the proceeds for general corporate purposes, including repayment of certain debt, as well as potential buybacks of class A common stock of Charter or common units of Charter Holdings.
Charter Communications was also in the market with a benchmark split-rated offering of senior secured notes (Ba1/BBB-/BBB-), according to a Tuesday filing with the Securities and Exchange commission.
| Issuers: | CCO Holdings, LLC and CCO Capital Corp.
|
| Amount: | $500 million
|
| Maturity: | March 1, 2030
|
| Security description: | Add-on to 4¾% senior notes due March 1, 2030
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG, RBC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | Morgan Stanley & Co. LLC, 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, LionTree, Loop Capital Markets LLC, MFR Securities Inc. and Ramirez
|
| Coupon: | 4¾%
|
| Price: | 101.25
|
| Yield: | 4.597%
|
| Spread: | 283 bps
|
| First call: | Sept. 1, 2024 at 102.375
|
| Trade date: | Oct. 15
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| Settlement date: | Oct. 24
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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: | 101 area
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| Original issue: | $1.35 billion priced on Sept. 17, 2019
|
| Fungibility: | Add-on notes to become immediately fungible with original notes
|
| Total issue size: | $1.85 billion
|
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