Published on 1/30/2023 in the Prospect News High Yield Daily.
New Issue: Charter/CCO Holdings prices upsized $1.1 billion 7 3/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Jan. 30 – Charter Communications, Inc. priced an upsized $1.1 billion issue of CCO Holdings, LLC and CCO Holdings Capital Corp. eight-year senior notes (B1/BB-) at par to yield 7 3/8% in a Monday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of the 7 3/8% to 7 5/8% yield talk. Initial guidance was in the 7½% to 7 5/8% area.
The deal was heard to be playing to $2 billion of orders early Monday afternoon, a trader said.
Morgan Stanley & Co. LLC was at the left of a syndicate of bookrunners that also included Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Barclays, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC.
The Stamford, Conn.-based cable TV and broadband services provider plans to use the proceeds, including the incremental proceeds resulting from the $100 million upsizing of the deal, for general corporate purposes, including debt refinancing and share buybacks.
| Issuers: | CCO Holdings, LLC and CCO Holdings Capital Corp.
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| Amount: | $1.1 billion, increased from $1 billion
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| Issue: | Senior notes
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| Maturity: | March 1, 2031
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| Bookrunners: | Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Barclays, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC
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| Co-managers: | Credit Agricole Securities (USA) Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc., LionTree Advisors LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Penserra Securities LLC and R. Seelaus & Co., Inc.
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| Coupon: | 7 3/8%
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| Price: | Par
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| Yield: | 7 3/8%
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| Spread: | 625 bps
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| First call: | March 1, 2026 at 103.688
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| Trade date: | Jan. 30
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| Settlement date: | Feb. 13
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S with registration right
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| Price talk: | 7 3/8% to 7½%
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| Marketing: | Drive-by
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