US cableco Charter Communications is planning to offer US$750m of senior unsecured notes due in 2022 in order to fund tender offers to cut its debt.
In a statement, Charter said that Credit Suisse is the lead bookrunning manager for the debt…
US cableco Charter Communications is planning to offer US$750m of senior unsecured notes due in 2022 in order to fund tender offers to cut its debt.
In a statement, Charter said that Credit Suisse is the lead bookrunning manager for the debt offering.
Charter intends to use the net proceeds from the offering to finance a series of tender offers by its subsidiaries.
One of the subsidiaries, Charter Communications Operating, LLC (Charter Operating), is offering to buy any or all of its 8% senior second-lien notes due 2012 and 10.875% senior second-lien notes due 2014.
Charter said that the amount required to acquire all the 2012 and 2014 notes would be US$843m.
A separate tender offer involves another Charter subsidiary, CCH II, which will offer to buy its 13.50% senior notes due 2016.
The amount that CCH II may spend on this tender offer depends on the price paid by Charter Operating to acquire the 2012 and 2014 notes.
Charter also gave details of how much it will pay for notes that are tendered before the early tender/consent deadline of 25 January.
For the 2012 notes, there will be a total consideration of US$1,019.40 for each US$1,000 tendered. For the 2014 notes, there will be US$1,068.35 for each US$1,000 tendered. For the 2016 notes, there will be US$1,155 for each US$1,000 tendered.
This includes a consent fee/early tender payment of US$25 for each of the 2012, 2014 and 2016 notes.
The deal managers for the tender offers are Credit Suisse, Citigroup and UBS.
Charter said that each tender offer was scheduled to expire at the end of 8 February.
