Published on 5/3/2011 in the Prospect News High Yield Daily.
New Issue: Charter prices upsized $1.5 billion 10-year notes at par to yield 6½%
By Paul A. Harris
Portland, Ore., May 3 - Charter Communications, issuing via CCO Holdings, LLC and CCO Holdings Capital Corp., priced a massively upsized $1.5 billion issue of 10-year senior notes (B1/BB-BB-) at par to yield 6½% on Tuesday, according to an informed source.
The yield printed on top of the price talk.
UBS Investment Bank was the left lead bookrunner for the quick-to-market issue, which was upsized from $1 billion.
Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.
The St. Louis-based cable television and internet services provider plans to use the proceeds to repay borrowings under one or more term loans and revolvers of Charter Operating's credit facilities.
| Issuer: | CCO Holdings, LLC and CCO Holdings Capital Corp. (Charter Communications)
|
| Amount: | $1.5 billion, increased from $1 billion
|
| Maturity: | April 30, 2021
|
| Securities: | Senior notes
|
| Left lead bookrunner: | UBS Investment Bank
|
| Joint bookrunners: | Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Co-managers: | J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., RBC Capital Markets LLC, Goldman Sachs & Co., Morgan Stanley & Co. Inc., Credit Agricole Securities (USA) Inc., Morgan Joseph TriArtisan LLC
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 324.9 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until April 30, 2015, then callable at 104.875, 103.25, 101.625, par on and after April 30, 2018
|
| Equity clawback: | 35% at 106.5 until April 30, 2014
|
| Trade date: | May 3
|
| Settlement date: | May 10
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Fitch: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6½% area
|
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