Published on 4/20/2004 in the Prospect News High Yield Daily.
New Issue: Charter Communications prices $1.5 billion in two parts
By Paul A. Harris
St. Louis, April 20 - Charter Communications Operating LLC/Capital Corp. sold $1.5 billion of senior secured second lien notes (B2/B-) in two parts on Tuesday, according to a syndicate source.
The St. Louis cable television and high-speed internet services provider sold $1.1 billion of eight-year notes at par to yield 8%. Price talk was in the area of 8 1/8%.
The company also sold $400 million of 10-year notes at par to yield 8 3/8%. Price talk was in the area of 8 3/8%.
JP Morgan, Banc of America Securities, Citigroup and Credit Suisse First Boston ran the books on the Rule 144A/Regulation S issue. The co-managers were Credit Lyonnais, Deutsche Bank Securities, BNP Paribas, Rabo Securities, Scotia Capital, Harris Nesbitt and RBC Capital Markets.
Proceeds from the sale will be used to refinance the bank debt of subsidiaries.
| Issuer: | Charter Communications Operating LLC/Capital Corp.
|
| Amount: | $1.5 billion
|
| Security description: | Senior secured second lien notes in two parts
|
| Bookrunner: | JP Morgan, Banc of America Securities, Citigroup, Credit Suisse First Boston
|
| Co-managers: | Credit Lyonnais, Deutsche Bank Securities, BNP Paribas, Rabo Securities, Scotia Capital, Harris Nesbitt, RBC Capital Markets
|
| Pricing date: | April 20
|
| Settlement date: | April 27
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B-
|
|
|
| Eight-year tranche
|
| Amount: | $1.1 billion
|
| Maturity: | April 30, 2012
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 387 basis points
|
| Call protection: | Make-whole call at Treasuries plus 50 basis points
|
| Equity clawback: | Until April 30, 2007 for 35% at 108.0
|
| Price talk: | 8 1/8% area
|
|
|
| 10-year tranche
|
| Amount: | $400 million
|
| Maturity: | April 30, 2014
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 399 basis points
|
| Call protection: | Callable after April 30, 2009 at 104
|
| Equity clawback: | Until April 30, 2007 for 35% at 108.0
|
| Price talk: | 8 3/8% area
|
|
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