Charter’s CCO Holdings bringing tap of 4¾% notes due 2030 on Monday

By Paul A. Harris

Portland, Ore., Dec. 2 – Charter Communications plans to price an add-on to the CCO Holdings, LLC and CCO Holdings Capital Corp. 4¾% senior notes due March 1, 2030 (expected ratings B1/BB/BB+) in a quick-to-market Monday trade of to-be-determined size, according to an informed source.

Initial price talk is 100.875 to 101.875.

Citigroup Global Markets Inc. is leading the offering. Other syndicate names are expected to be announced.

The notes have a make-whole call at Treasuries plus 50 basis points until Sept. 1, 2024, after which they become callable at 102.375. They also feature a 40% equity clawback at 104.75 until Sept. 1, 2022.

The original $1.35 billion issue priced on Sept. 17, 2019.

The Stamford, Conn.-based telecommunications and mass media company plans to use the proceeds to fund share repurchases, as well as to pre-fund $2 billion of 2020 maturities, and for general corporate purposes.

Concurrently with its high-yield offering the company is in the market with an add-on to the Charter Communications Operating, LLC/Charter Communications Operating Capital Corp. 4.8% senior secured notes due 2050, which is being done on the investment-grade desk.

The size of the 2050 notes tap also remains to be determined.

However, as a partial indication of the anticipated combined issuance, the taps of the 2030 notes and 2050 notes are expected to at least address the $2 billion of 2020 maturities, the source said.

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