Charter raises $300M on sale of senior notes

Thu, 01/20/2011 - 7:20am
CED staff

Charter Communications announced yesterday that it had raised $300 million through the sale of senior, unsecured notes that are due to mature on Jan. 15, 2019.

Charter sold the notes though its CCO Holdings and CCO Holdings Capital units.

The nation's fourth-largest cable operator said it would use the proceeds to pay back remaining term loan borrowings under its subsidiary's credit facility, and for general corporate purposes. The notes carry a coupon rate of 7 percent.

The notes bear an interest rate of 7 percent per annum and will be issued at a price of 99.5 percent of the aggregate principal amount. The notes are part of the same series as the 7 percent senior notes due 2019 issued on Jan. 11 in the principal amount of $1.1 billion.  

The notes will result in proceeds of approximately $294 million after deducting underwriting discounts and commissions.

Charter said the plan was to initially offer $250 million worth of notes, but it raised the amount to $300 million Wednesday afternoon.


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