By Paul A. Harris
St. Louis, March 11 - Charter Communications Operating, LLC priced a $520 million issue of 10 7/8% second-lien notes due 2014 (B3/B-) at 96.106 to yield 11¾% in a quick-to-market Tuesday transaction, according to an informed source.
The notes came on top of the price talk, which was for a 10 7/8% coupon to yield 11¾%.
J.P. Morgan Securities Inc., Credit Suisse and Deutsche Bank Securities were the underwriters for the Rule 144A and Regulation S note offering, which generated $499.75 million of proceeds.
According to a press release from the company, the notes will be guaranteed by CCO Holdings, LLC and certain subsidiaries of Charter Operating.
Proceeds will be used to pay down revolving credit facility debt.
Charter Communications, Inc. is a publicly traded broadband communications company based in St. Louis.
| Issuer: | Charter Communications Operating, LLC
|
| Guarantors: | CCO Holdings LLC and other units of Charter Operating
|
| Face amount: | $520 million
|
| Proceeds: | $499.75 million (approximate)
|
| Maturity: | 2014
|
| Bookrunners: | J.P. Morgan Securities Inc., Credit Suisse, Deutsche Bank Securities
|
| Coupon: | 10 7/8%
|
| Price: | 96.106
|
| Yield: | 11¾%
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A/Regulation S
|
| Price talk: | 10 7/8% at a discount to yield 11¾%
|
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