New Issue: Charter Communications upsizes seven-year notes to $1 billion, prices at par to yield 7¼%

By Paul A. Harris

St. Louis, Sept. 20 - Charter Communications, Inc., issuing via CCO Holding, LLC and CCO Holdings Capital Corp., priced an upsized $1 billion issue of seven-year senior unsecured notes (B2/B) at par to yield 7¼%, on Monday, according to an informed source.

The yield printed on top of the price talk. The amount was increased from the original $750 million.

Citigroup was the left bookrunner for the quick-to-market deal. Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank Securities and UBS Investment Bank were joint bookrunners.

Proceeds will be used to repay term loan debt under Charter Operating's credit facilities and for general corporate purposes.

Charter is a St. Louis-based cable television and internet services provider.

Issuer:	CCO Holding, LLC and CCO Holdings Capital Corp. (Charter Communications, Inc.)
Amount:	$1 billion (increased from $750 million)
Maturity:	Oct. 30, 2017
Securities:	Senior unsecured notes
Left bookrunner:	Citigroup
Joint bookrunners:	Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank Securities, UBS Investment Bank
Co-managers:	JP Morgan, Goldman Sachs & Co. US Bank, Morgan Stanley, RBC Capital Markets, Credit Agricole CIB
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	515 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Oct. 30, 2013, then callable at 105.438, 103.625, 101.813, declining to par on or after Oct. 30, 2016
Equity clawback:	35% at 107.25 until Oct. 30, 2013
Trade date:	Sept. 20
Settlement date:	Sept. 27
Ratings:	Moody's: B2
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	7¼% area
Marketing:	Quick to market

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