Charter revises price talk on both tranches of $1.7 billion note sale, expected to price Thursday

By Paul A. Harris

St. Louis, Aug. 13 - Revised price talk was heard Wednesday on Charter Communications, Inc.'s offering of $1.7 billion of senior notes (CCC-), according to an informed source.

The seven-year non-call-four notes are now talked at a yield in the 10 1/8%, revised from 9¼%-9½%.

The 10-year non-call-five notes are talked at a yield in the 10¼% area, revised from 9 3/8%-9 5/8%.

Sizes remain to be determined.

Both tranches are expected to price on Thursday.

The notes will be issued through Charter Communications Holdings II LLC and CCH II Capital Corp.

Citigroup, Banc of America Securities and JP Morgan are joint bookrunners on the Rule 144A (with registration rights) deal. Morgan Stanley, BNP Paribas, Credit Lyonnais, Fleet Securities, Harris Nesbitt, Lehman Brothers, RBC, Scotia Capital, TD Securities, UBS Investment Bank and US Bancorp Piper Jaffrey are co-managers.

The deal had been restructured on Tuesday into an offering from a single issuer. Previous to the restructuring two issuers - one senior to the other in the capital structure - were each offering $850 million of 10-year non-call-five notes. The restructuring was undertaken, according to informed sources, in order to eliminate confusion.

Proceeds from the bond sale will be used to fund the company's tender for its existing debt and repay debt.

Charter is a St. Louis-based cable operator.

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