Charter gets tenders, consents for $296 million 7 7/8% notes to date

By Susanna Moon

Chicago, May 3 - Charter Communications, Inc. received tenders and consents for about $296 million, or 32.94%, of its $900 million outstanding 7 7/8% senior notes due 2018 through subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. by the early tender deadline, which was 5 p.m. ET on May 2.

The total purchase price for the tendered notes will be no more than $316 million, with settlement scheduled for May 3, according to a company press release.

As noted before, Charter is seeking consents to eliminate substantially all of the restrictive covenants and events of default and eliminate or modify related provisions contained in the note indenture.

The company said it has failed so far to obtain the needed consents to amend the notes.

Charter plans to redeem the remaining outstanding notes not tendered by the consent payment date on June 3, the release noted.

As noted before, the total purchase price under the tender offer is $1,063.25 for each $1,000 principal amount of notes tendered by the consent date. The total amount includes a $30 consent payment per $1,000 of notes.

Those who tender after the consent date will receive $1,033.25 per $1,000 of notes.

Holders also will receive accrued interest up to the payment date.

The tender offer will continue to run until 11:59 p.m. ET on May 16. The offer began April 19.

Tendered notes may no longer be withdrawn, as of the early deadline.

Holders could not tender their notes without consenting to the proposed amendments or withdraw their consents without withdrawing the related notes.

Settlement for the remaining tendered notes will occur promptly after the offer ends, as previously noted.

The completion of the offer is conditioned on obtaining financing.

BofA Merrill Lynch (attn.: debt advisory services, 888 292-0070 or collect 646 855-3401), Barclays (attn.: liability management group, 800 438-3242 or collect 212 528-7581) and Citigroup Global Markets Inc. (attn.: liability management group, 800 558-3745 or collect 212 723-6106) are the dealer managers. Global Bondholder Services Corp. (866 389-1500 or collect 646 855-3401) is the information agent.

The issuer is a communications company based in Stamford, Conn.

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