Published on 10/15/2019 in the Prospect News High Yield Daily and Prospect News Investment Grade Daily.
New Issue: Charter prices $1.5 billion of 4.8% secured notes due 2050 at 260 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Oct. 15 – Charter Communications, Inc. sold $1.5 billion of 4.8% senior secured notes due March 1, 2050 (Ba1/BBB-/BBB-) on Tuesday at a spread of Treasuries plus 260 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.436 to yield 4.836%.
Initial price talk was in the Treasuries plus 275 bps area.
The deal was placed via subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC.
The bonds are guaranteed by all of the issuers’ subsidiaries that guarantee the obligations of Charter Communications Operating, LLC under the company’s credit agreement.
Proceeds will be used to repay certain debt.
Charter Communications also priced a $500 million tap of its junk-rated 4¾% senior notes due March 1, 2030 (Ba1/BB/BB+) on Tuesday through issuers CCO Holdings, LLC/CCO Holdings Capital Corp. BofA Securities was the left bookrunner of the Rule 144A and Regulation S reopening.
Charter is a Stamford, Conn.-based broadband communications company.
| Issuers: | Charter Communications Operating, LLC/Charter Communications Operating Capital Corp.
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| Guarantors: | Subsidiaries that issue or guarantee obligations of Charter Communications Operating, LLC under a credit agreement
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| Amount: | $1.5 billion
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| Description: | Senior secured notes
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| Maturity: | March 1, 2050
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, TD Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Morgan Stanley & Co. LLC, Barclays, BNP Paribas Securities Corp., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., Credit Agricole Securities (USA) Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., Cabrera Capital Markets, LLC, LionTree Advisors LLC, MFR Securities, Inc. and Williams Capital Group, LP
|
| Coupon: | 4.8%
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| Price: | 99.436
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| Yield: | 4.836%
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| Spread: | Treasuries plus 260 bps
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| Call features: | Make-whole call before Sept. 1, 2049 at price equal to par and Treasuries plus 40 bps; thereafter at par
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| Trade date: | Oct. 15
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| Settlement date: | Oct. 24
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price guidance: | Treasuries plus 260 bps area, plus or minus 2 bps; initial talk at Treasuries plus 275 bps area
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