Published on 8/3/2017 in the Prospect News High Yield Daily.
New Issue: Charter prices upsized $1.5 billion 10.5-year notes at par to yield 5%
By Paul A. Harris
Portland, Ore., Aug. 3 – CCO Holdings, LLC and CCO Holdings Capital Corp., subsidiaries of Charter Communications, Inc., priced an upsized $1.5 billion issue of senior notes due Feb. 1, 2028 (B1/BB+/BB+) at par to yield 5% on Thursday, according to market sources.
The issue size was increased from $1 billion.
The yield printed on top of yield talk. Initial guidance had the deal coming to yield 5% to 5 1/8%.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank and Goldman Sachs & Co. were the joint bookrunners.
The Stamford, Conn.-based broadband communications company plans to use the proceeds for general corporate purposes, including buybacks of the class A common stock of Charter or common units of Charter Communications Holdings, LLC.
| Issuers: | CCO Holdings, LLC and CCO Holdings Capital Corp.
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| Amount: | $1.5 billion, increased from $1 billion
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| Maturity: | Feb. 1, 2028
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| Securities: | Senior notes
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| Left bookrunner: | BofA Merrill Lynch
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| Joint bookrunners: | Citigroup Global Markets Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Goldman Sachs & Co.
|
| Co-managers: | Mizuho Securities (USA) Inc., RBC Capital Markets LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., MUFG, Scotia Capital, TD Securities, Credit Agricole, SMBC, Lion Tree, Morgan Stanley & Co. LLC, CL King, Mischler, Ramirez, Williams Capital Group LP
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| Coupon: | 5%
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| Price: | Par
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| Yield: | 5%
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| Spread: | 277 bps
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| Call protection: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2022, then callable at a premium
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| Trade date: | Aug. 3
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| Settlement date: | Aug. 8
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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 with registration rights
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| Price talk: | 5%
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| Marketing: | Quick to market
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