Published on 6/26/2019 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Charter Communications gives details on $1.25 billion sale of 5.125% 30-year notes
By Cristal Cody
Tupelo, Miss., June 26 – Charter Communications, Inc. provided additional details of its $1.25 billion offering of 5.125% 30-year registered senior secured notes (Ba1/BBB-/BBB-) in an FWP filing with the Securities and Exchange Commission released on Wednesday.
The company priced the notes on Tuesday at 99.88 to yield 5.133%, or a spread of Treasuries plus 260 basis points.
Initial price talk was in the Treasuries plus 262.5 bps area with guidance later firmed to the 260 bps spread area.
The deal was priced via subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.
The offering had a final book size of $2.45 billion.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.
The bonds are guaranteed by all of the issuers’ subsidiaries that issue or guarantee any equally and ratably secured debt.
Proceeds will be used to repay certain debt, which may include the 5% senior notes due Feb. 1, 2020 issued by Time Warner Cable, LLC. Any remaining proceeds will be used for general corporate purposes, including to fund potential buybacks of class A common stock of Charter or common units of Charter Communications Holdings, LLC.
Charter is a Stamford, Conn.-based broadband communications company.
| Issuers: | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp.
|
| Guarantors: | Charter subsidiaries that issue or guarantee any equally and ratably secured debt
|
| Amount: | $1.25 billion
|
| Description: | Senior secured notes
|
| Maturity: | July 1, 2049
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, BNP Paribas Securities Corp., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., Credit Agricole Securities (USA) Inc., U.S. Bancorp Investments, Inc., LionTree Advisors LLC, Mischler Financial Group, Inc., R. Seelaus & Co., Inc., Samuel A. Ramirez & Co., Inc. and Williams Capital Group, LP
|
| Coupon: | 5.125%
|
| Price: | 99.88
|
| Yield: | 5.133%
|
| Spread: | Treasuries plus 260 bps
|
| Call features: | Make-whole call before Jan. 1, 2049 at price equal to par and Treasuries plus 40 bps; thereafter at par
|
| Trade date: | June 25
|
| Settlement date: | July 10
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 260 bps area, plus or minus 5 bps; initial talk at Treasuries plus 262.5 bps area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
