Published on 1/19/2011 in the Prospect News High Yield Daily.
New Issue: Charter sells upsized $300 million add-on to 7% notes due 2019 at 99.5
By Paul A. Harris
St. Louis, Jan. 19 - Charter Communications, Inc. priced an upsized $300 million add-on to its 7% senior notes due Jan. 1, 2019 (existing ratings B2/B+) at 99.5 to yield 7.082% on Wednesday, according to an informed source.
The reoffer price came at the rich end of the 99.25 to 99.50 price talk.
Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities and UBS Investment Bank were the joint bookrunners for the quick-to-market add-on, which was upsized from $250 million.
The issuing entities were CCO Holdings, LLC and CCO Holdings Capital Corp., subsidiaries of the St. Louis-based cable television, internet and telecommunications services provider.
Proceeds will be used to repay the B-1 and B-2 term loans.
| Issuer: | CCO Holdings LLC/CCO Holdings Capital Corp. (Charter Communications)
|
| Face amount: | $300 million, increased from $250 million
|
| Proceeds: | $298.5 million
|
| Maturity: | Jan. 1, 2019
|
| Security description: | Fungible add-on to 7% senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities, UBS Investment Bank
|
| Co-managers: | J.P. Morgan Securities LLC, US Bancorp, RBC Capital Markets Corp., Goldman Sachs & Co., Morgan Stanley & Co. Inc., Credit Agricole CIB
|
| Coupon: | 7%
|
| Price: | 99.50
|
| Yield: | 7.082%
|
| Spread: | 415 bps
|
| Call features: | Callable on Jan. 1, 2014 at 105.25, 103.50, 101.75, par on and after Jan. 1, 2017
|
| Equity clawback: | 35% at 107.0 until Jan. 1, 2014
|
| Trade date: | Jan. 19
|
| Settlement date: | Jan. 25
|
| Existing ratings: | Moody's: B2
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| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights
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| Price talk: | 99.25 to 99.50
|
| Marketing: | Quick to market
|
| Original issue: | $1.1 billion priced at 99.246 to yield 7 1/8% on Jan. 4, 2011
|
| Total issue size: | $1.4 billion
|
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