US cableco Charter Communications has priced a US$1.9bn two-tranche senior unsecured note offering, upsized from US$1.5bn, at par.
The first US$1.15bn tranche comprises 2023 notes carrying a 5.125% annual interest rate, while the US$750m tranche…
US cableco Charter Communications has priced a US$1.9bn two-tranche senior unsecured note offering, upsized from US$1.5bn, at par.
The first US$1.15bn tranche comprises 2023 notes carrying a 5.125% annual interest rate, while the US$750m tranche consists of 2025 notes bearing a 5.375% annual interest rate.
Proceeds from the offering will be used to finance the company’s previously announced tender offer for any and all of its outstanding US$1bn 7.25% senior notes due 2017 priced at US$1,040.50 plus interest and US$700m 8.125% senior notes due 2020 priced at US$1,045.50 plus interest, and for general corporate purposes.
Credit Suisse Securities, Deutsche Bank Securities , Goldman Sachs and Merrill Lynch, Pierce, Fenner & Smith are acting as joint book-running managers for the offering.
Last month, Charter, the fourth-largest cable operator, struck a deal to acquire rival Bright House Networks for US$10.4bn.
The consideration is made up of US$8.4bn of partnership units and US$2bn in cash.
Charter and Bright House’s owner, Advance Newhouse, plan to form a partnership to which they will both contribute all of their cable assets. Charter will then own 73.7% of the partnership, with Advance Newhouse holding the remaining 26.3% in common and convertible preferred units.
