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Charter Communications Debt Offering, Really More Refinancing (CHTR)

Charter Communications Inc. (NASDAQ: CHTR) is actually managing to trade higher despite a securities offering.  The company offered $750 million in senior unsecured notes, but it has also announced a tender offer for debt securities. The subsidiaries of CCO Holdings…

By Jon C. Ogg
Published November 30, 2011, 11:25am ET · 1 min read

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Charter Communications Inc. (NASDAQ: CHTR) is actually managing to trade higher despite a securities offering.  The company offered $750 million in senior unsecured notes, but it has also announced a tender offer for debt securities.

The subsidiaries of CCO Holdings and CCO Holdings Capital offered the $750 million of senior unsecured notes due 2020.  BofA Merrill Lynch is the lead book-running manager for the offering. The debt tendered in the offering is as follows:

  • 8.000% Senior Second Lien Notes due 2012
  • 10.875% Senior Second Lien Notes due 2014
  • 13.500% Senior Notes due 2016

Charter’s re-emerged shares have performed rather well since the early-2010 exit from bankruptcy.  The cable outfit shed about $8 billion in debt and lowered its costs of borrowing significantly. Now it has seen revenues growing, although its profitability continues to remain a struggle as the consensus estimate from Thomson Reuters is -$2.97 EPS for 2011 and and only $0.87 EPS for 2012.  At the end of 2008, Charter’s long-term debt was over $21 billion.  As of September 30, 2011, the new long-term debt was listed as $12.58 billion. 

Shares were trading as low as $30 after the former creditors started unloading the new shares in early 2010, but this stock was challenging $60.00 earlier this year.  Shares are up 1.6% at $53.50 today and the 52-week range is $32.83 to $61.15.

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Jon C. Ogg

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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