Charter Communications to offer senior secured notes

STAMFORD, Conn. - Charter Communications, Inc. (NASDAQ:CHTR), a telecommunications company with a market capitalization of $41 billion, announced Monday that its subsidiaries plan to offer senior secured fixed rate notes. The company currently maintains a debt-to-capital ratio of 68%.

The company said its subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., will use the net proceeds for general corporate purposes. These include repaying certain debt, specifically the 6.150% Senior Secured Notes due 2026, funding potential buybacks of Charter Class A common stock and common units of Charter Communication Holdings, LLC, and covering related fees and expenses. According to InvestingPro, management has been aggressively buying back shares, though current short-term obligations exceed liquid assets with a current ratio of 0.33.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC will serve as Joint Book-Running Managers for the offering, which is subject to market conditions.

The notes will be offered pursuant to an effective automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission.

Charter Communications is a broadband connectivity company and cable operator with services available to more than 57 million homes and businesses across 41 states through its Spectrum brand. The company offers residential and business services including internet, TV, mobile and voice services.

The announcement was made in a press release statement issued by the company.

In other recent news, Charter Communications has announced a significant development regarding its transaction with Cox Communications. The company’s stockholders overwhelmingly approved the necessary proposals for the transaction, with more than 99% of votes cast in favor. This approval is a key step in moving the deal forward. Additionally, Charter Communications received a notice from Advance/Newhouse Partnership to suspend their share repurchase agreement. This suspension will take effect immediately after the next repurchase closing date and is intended to continue until the completion or termination of the transactions outlined in the Transaction Agreement dated May 16, 2025. Advance/Newhouse has reserved the right to end the suspension at any time. Furthermore, Bernstein has reiterated its Outperform rating on Charter Communications, maintaining a price target of $380.00. Despite the stock’s recent decline, Bernstein anticipates that growth in Average Revenue Per User (ARPU) will offset subscriber losses, leading to low-single-digit growth in revenue and EBITDA.

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