Charter Communications Inc. units CCO Holdings LLC and CCO Holdings Capital Corp. intend to use the net proceeds from their previously announced offering of senior unsecured notes due 2030 to finance a tender offer by the two subsidiaries.
The subsidiaries are offering to purchase any and all of its outstanding 5.250% senior notes due 2021 in the tender offer. The purchase price for the 2021 notes validly tendered and not validly withdrawn and accepted for purchase will be $1,001.25 per $1,000 principal amount of the notes, plus accrued and unpaid interest up to, but not including, the settlement date for the tender offer.
The tender offer will expire at 5:00 p.m. ET on Sept. 27, unless extended or earlier terminated.
Concurrently with the commencement of the tender offer, the subsidiaries issued a conditional notice of redemption to holders of the 2021 notes to redeem any and all notes that remain outstanding after completion of the tender offer.
The notes will be redeemed at a redemption price equal to 100.000% of the aggregate principal amount plus accrued and unpaid interest on the notes redeemed to, but not including, the redemption date.
CCO Holdings and CCO Holdings Capital also issued a conditional notice of partial redemption to redeem $850 million aggregate principal amount of its 5.750% senior notes due 2024 at a redemption price equal to 101.917% of the principal amount redeemed, plus accrued and unpaid interest to, but not including, the redemption date. The redemptions are expected to be completed Oct. 18.
Bank of America Merrill Lynch is the dealer manager for the tender offer.
