Charter to Offer Senior Secured Notes

Charter to Offer Senior Secured Notes

Charter to Offer Senior Secured Notes

Charter Communications has announced that its subsidiary, CCO Safari II, LLC, is intending to offer senior secured notes due 2020, 2022, 2025, 2035, 2045 and 2055.

In a press statement, the company said it plans to use net proceeds from the sale of the Notes to partially finance its previously announced transactions with Time Warner Cable and Bright House Networks.

It is also expected that proceeds from the offering of the Notes will be placed in escrow at CCO Safari II, LLC until the closure of transactions between Charter and Time Warner Cable. At that time, the Notes will be assumed by Charter’s subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp.

“The Notes will be sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S,” the statement read in part. “The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements.”

In any case, the Securities Act and applicable state securities laws will be applied for those who apply to buy the Notes. Charter has further clarified that the offering is subject to market conditions among several others. Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC will act as the Joint Book-Running Managers for the offering.

This offer is expected to attract huge market attention because Charter is a leading broadband communications company and the fourth-largest cable operator in the United States. The initiative will have a huge implication to operations of other market players.

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