Drawing from $1.6 billion collected in a sale of new debt earlier this year, Charter Communications has purchased back a total of about $1.4 billion in outstanding debt.
The paired maneuvers were designed to allow Charter to reduce its interest payments by retiring existing debt accompanied by various covenants and obligations Charter considered restrictive.
Charter entered Chapter 11 bankruptcy protection in 2009, largely because of an inability to manage its heavy debt load. Through the bankruptcy process, the company was able to restructure its debt. The recent sale of new debt and buy-back of old debt were two more steps in Charter’s plan to improve its financial standing.
In April, the company closed a sale of two sets of notes, some due in 2018, some in 2020, for a total of about $1.6 billion. The plan was to buy back almost that amount of notes – $1.57 billion’s worth – due in 2013 and in 2014.
Charter said it has purchased back approximately $740.8 million aggregate principal amount of its outstanding senior notes due 2013 – over 92 percent of the total outstanding – and approximately $677.3 million aggregate principal amount of its outstanding senior second lien notes due 2014 – or nearly 88 percent of the total.
In the interest of retiring all of its 2013 and 2014 notes, the company said it has increased its tender offer on remaining notes and extended its tender offer until May 12.