Published on 12/2/2019 in the Prospect News High Yield Daily.
New Issue: Charter prices $1.2 billion tap of 4¾% notes due March 2030 at 101.125
By Paul A. Harris
Portland, Ore., Dec. 2 – Charter Communications Inc. priced a $1.2 billion add-on to the CCO Holdings, LLC and CCO Holdings Capital Corp. 4¾% senior notes due March 1, 2030 (B1/BB/BB+) at 101.125 in a quick-to-market Monday trade, according to an informed source.
The reoffer price came at the rich end of price talk in the 101 area. Initial price talk was 100.875 to 101.875.
Citigroup Global Markets Inc. was the lead left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., Mizuho Securities USA Inc., BofA Securities Inc., BTMU, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC.
The issuers originally sold $1.35 billion of the notes on Sept. 17.
The Stamford, Conn.-based telecommunications and mass media company plans to use the proceeds to fund share repurchases, as well as to pre-fund 2020 maturities, and for general corporate purposes.
| Issuers: | CCO Holdings, LLC and CCO Holdings Capital Corp.
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| Amount: | $1.2 billion
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| Maturity: | March 1, 2030
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| Securities: | Add-on to senior notes due 2030
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| Left bookrunner: | Citigroup Global Markets Inc.
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| Joint bookrunners: | Deutsche Bank Securities Inc., Mizuho Securities USA Inc., BofA Securities Inc., BTMU, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | Morgan Stanley & Co. LLC, Barclays, 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., LionTree Advisors LLC, BRV, C.L. King & Associates Inc., Great Pacific Securities and MBS
|
| Coupon: | 4¾%
|
| Price: | 101.125
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| Yield to worst: | 4.575%
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| Yield to maturity: | 4.61%
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| First call: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2024, then callable at 102.375
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| Equity clawback: | 40% at 104.75 until Sept. 1, 2022
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| Trade date: | Dec. 2
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| Settlement date: | Dec. 16 with accrued interest
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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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| Marketing: | Quick to market
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| Original issue: | $1.35 billion priced on Sept. 17, 2019
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| Total issue size: | $2.55 billion
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