Charter units report early results in tender offers for three series

By Jennifer Chiou

New York, Jan. 26 - Charter Communications, Inc. subsidiaries Charter Communications Operating, LLC and CCH II, LLC announced the preliminary results of their tender offers for three series of notes. As reported, the companies intend to spend up to $843 million to purchase the notes.

Charter Communications Operations said it received and accepted tenders from holders of about $300 million of its $500,341,000 of 8% senior second-lien notes due 2012 and roughly $294 million of its $311,561,000 of 10 7/8% senior second-lien notes due 2014.

CCH II obtained tenders from holders of about $334 million of its $1,480,367,024 of outstanding 13½% senior notes due 2016.

The Charter Operations' notes have priority over the CCH II notes, which have a purchase cap of $250 million.

As previously noted, Charter Operating is also seeking consents from a majority of the holders of the 8% notes and 10 7/8% notes to remove the covenants under the notes, and it has received the necessary consents.

For each $1,000 principal amount, the total price will be $1,019.40 for the 8% notes, $1,068.35 for the 10 7/8% notes and $1,155.00 for the 13½% notes tendered by the early deadline at 5 p.m. ET on Jan. 25. The total price includes an early tender premium of $25.00 per $1,000 of notes.

Holders who tender after the early date will not receive the early tender premium.

The offers will run until 11:59 p.m. ET on Feb. 8. They began on Jan. 11.

The offers are conditioned on financing. CCO Holdings, LLC and CCO Holdings Capital Corp. plan to publicly offer $750 million principal amount of senior notes due 2022 to help fund the offers, along with drawdowns under Charter's revolving credit facility.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 325-5912), Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) and UBS Securities LLC (888 719-4210) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 389-1500 or collect 212 430-3774) was the information agent.

Charter is a St. Louis-based cable operator and broadband communications company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.