Charter Communications Inc. has priced its offerings and will issue about 52.4 million shares of Class A common stock at $21 a share and $550 million of convertible senior notes at 4.75 percent annually, it reports.
The notes, due 2006, are payable semiannually and will be convertible into Class A common stock at a conversion price of $26.25 a share, Charter says. The company may issue an additional 7.9 million shares of the stock and an additional $82.5 million of notes in options granted to underwriters.
The company had said on May 15 it would offer the shares, the net proceeds of which will help fund the purchase price of Charter's acquisition of AT&T Broadband's cable systems. The remaining proceeds will go to working capital and capital expenditures.