By Paul A. Harris
Portland, Ore., June 25 – CCO Holdings LLC and CCO Holdings Capital Corp., subsidiaries of Charter Communications, Inc., priced an upsized $750 million add-on to their 5 3/8% senior notes due June 1, 2029 (expected ratings B1/BB) at 102 in a quick-to-market Tuesday trade, according to market sources.
The issue price came rich to price talk in the 101.875 area. Initial talk was 101.5 to 101.75.
Deutsche Bank Securities Inc. was the bookrunner.
The Stamford, Conn.-based broadband communications company plans to use the proceeds for general corporate purposes, including potential buybacks of the class A common stock of Charter, and for debt repayment.
Tuesday's CCO unsecured notes drive-by add-on came concurrently with a benchmark split-rated offering from Charter Communications' operating subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. That offer included senior secured notes due July 1, 2049 (expected ratings Ba1/BBB-/BBB-) in a transaction to be executed on the investment-grade syndicate desk, sources said.
| Issuers: | CCO Holdings LLC and CCO Holdings Capital Corp.
|
| Amount: | $750 million, increased from $500 million
|
| Maturity: | June 1, 2029
|
| Security description: | Add-on to 5 3/8% senior notes due June 1, 2029
|
| Bookrunner: | Deutsche Bank Securities Inc.
|
| Coupon: | 5 3/8%
|
| Price: | 102
|
| Spread: | 338 bps
|
| First call: | June 1, 2024 at 102.688
|
| Trade date: | June 25
|
| Settlement date: | July 10
|
| Expected ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 101.875 area
|
| Marketing: | Quick to market
|
| Original issue: | $750 million priced on May 9, 2019, downsized from $1 billion
|
| Total issue size: | $1.5 billion
|
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