By Abigail W. Adams
Portland, Me., July 6 – Charter Communications Inc. subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. priced $1.5 billion of long 10-year senior notes (B1/BB) at par to yield 4¼% in a Monday drive-by, according to market sources.
Pricing came in the middle of talk for a yield in the 4¼% area. The notes were initially guided in the 4 3/8% area, a market source said.
Morgan Stanley & Co. LLC (lead left), Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, MUFG, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC were bookrunners for the Rule 144A and Regulation S with registration rights offering.
The notes are non-callable for five years with the first call at par plus 50% of the coupon.
Proceeds will be used for general corporate purposes, including the repayment of debt and to fund the potential buyback of class A common stock or common units.
Charter is a Stamford, Conn.-based broadband connectivity company and cable operator.
| Issuers: | CCO Holdings, LLC and CCO Holdings Capital Corp.
|
| Amount: | $1.5 billion
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| Maturity: | Feb. 1, 2031
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| Securities: | Senior notes
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| Bookrunners: | Morgan Stanley & Co. LLC (lead left), Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc., BofA Securities Inc., Goldman Sachs & Co. LLC, MUFG, RBC Capital Markets Corp., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Coupon: | 4¼%
|
| Price: | Par
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| Yield: | 4¼%
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| Spread: | 363 bps
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| Call protection: | Five years
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| Trade date: | July 6
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| Settlement date: | July 9
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| Ratings: | Moody's: B1
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| S&P: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¼% area
|
| Marketing: | Quick to market
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