By Paul A. Harris
Portland, Ore., Jan. 13 – CCO Holdings LLC and CCO Holdings Capital Corp., subsidiaries of Charter Communications, Inc., priced an upsized $1.2 billion issue of 10-year senior notes (B1/BB+/BB+) at par to yield 4¾% in a Thursday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of the 4¾% to 4 7/8% yield talk. Initial guidance was in the 5% area.
The order book was heard to contain $3 billion by mid-afternoon, according to a trader, who added that there was a significant amount of reverse inquiry in the deal.
Deutsche Bank Securities Inc. is the left bookrunner.
The Stamford, Conn.-based broadband communications company plans to use the proceeds for general corporate purposes, including potential buybacks of Charter class A common stock and Charter Communications Holdings common units, and to repay certain debt.
| Issuers: | CCO Holdings LLC and CCO Holdings Capital Corp.
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| Amount: | $1.2 billion, increased from $1 billion
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| Issue: | Senior notes
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| Maturity: | Feb. 1, 2032
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| Lead: | Deutsche Bank Securities Inc.
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| Coupon: | 4¾%
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| Price: | Par
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| Yield: | 4¾%
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| Spread: | 304 bps
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| First call: | Feb. 1, 2027 at 102.375
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| Trade date: | Jan. 13
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| Settlement date: | Jan. 19
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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
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| Price talk: | 4¾% to 4 7/8%
|
| Marketing: | Drive-by
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