Charter prices $2 billion in senior secured notes

Published 19/08/2025, 03:06
Charter prices $2 billion in senior secured notes

STAMFORD, Conn. - Charter Communications, Inc. (NASDAQ:CHTR), a $41 billion market cap telecommunications giant with $55.2 billion in trailing twelve-month revenue, announced Monday it has priced $2 billion in senior secured notes through its subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.

The offering consists of $1.25 billion in notes due 2035 with a 5.850% interest rate priced at 99.932% of principal amount, and $750 million in notes due 2055 with a 6.700% interest rate priced at 99.832% of principal amount.

According to the company’s press release statement, Charter plans to use the proceeds for general corporate purposes, including repaying existing debt such as its 6.150% Senior Secured Notes due 2026, funding potential stock buybacks, and covering related fees. InvestingPro analysis reveals management has been aggressively buying back shares, with 12 more key insights available to subscribers.

The joint book-running managers for the offering were Citigroup Global Markets Inc., J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.

The transaction, made under an automatic shelf registration statement on Form S-3 filed with the Securities and Exchange Commission, is expected to close on September 2, 2025, subject to customary closing conditions.

Charter Communications provides broadband connectivity and cable services to more than 57 million homes and businesses across 41 states through its Spectrum brand. Trading near its 52-week low of $254.67, InvestingPro analysis indicates the stock is currently undervalued, with a comprehensive Pro Research Report available among 1,400+ top US stocks covered by the platform.

In other recent news, Charter Communications announced plans to offer senior secured fixed-rate notes through its subsidiaries, Charter Communications Operating, LLC, and Charter Communications Operating Capital Corp. The proceeds from this offering are intended for general corporate purposes, including repaying certain debts and potentially funding stock buybacks. Additionally, Charter Communications has received a notice from Advance/Newhouse Partnership to suspend their standing share repurchase agreement. This suspension is linked to a Transaction Agreement involving Charter, Charter Communications Holdings, LLC, and Cox Enterprises, Inc., and will remain in effect until the completion or termination of the related transactions. In another development, Bernstein SocGen Group has reiterated its Outperform rating on Charter Communications with a price target of $380. Bernstein addressed concerns about subscriber losses, projecting that ARPU growth could drive revenue and EBITDA growth despite these challenges. These developments highlight the company’s ongoing strategic financial maneuvers and analyst perspectives.

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