STAMFORD, Conn., May 3, 2013 /PRNewswire/ -- Charter
Communications, Inc. (NASDAQ: CHTR) (along with its
subsidiaries, the "Company" or "Charter") today announced that its
subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp.,
have closed on the public sale of $1
billion in aggregate principal amount of senior unsecured
notes due in 2024 (the "Notes"). The Notes bear an interest rate of
5.750 percent per annum and were issued at par.
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The Notes resulted in proceeds of approximately $987 million after deducting underwriting
discounts, commissions and other expenses. Charter intends to use
the net proceeds from the sale of the Notes to repurchase or redeem
CCO Holdings' outstanding 7.875% senior notes due 2018, to pay
related fees and expenses and for general corporate purposes.
The offering and sale of the Notes was made pursuant to a shelf
registration statement on Form S-3 previously filed with the
Securities and Exchange Commission, as amended and prospectus
supplement dated April 19, 2013.
Charter also announced today its subsidiary, Charter
Communications Operating, LLC, has entered into a Term Loan F
pursuant to the terms of its Amended and Restated Credit Agreement
providing for $1.2 billion of term
loans with a final maturity date of January
3, 2021. Pricing on the new term loans was set at LIBOR plus
225 basis points with a LIBOR floor of 0.75% and 0.25% of original
issue discount. The proceeds from Term Loan F will be used,
together with other funds, to refinance $532
million principal amount of Term Loan C due 2016, and
$743 million principal amount of Term
Loan D due 2019.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), regarding, among
other things, our plans, strategies and prospects, both business
and financial. Although we believe that our plans, intentions and
expectations reflected in or suggested by these forward-looking
statements are reasonable, we cannot assure you that we will
achieve or realize these plans, intentions or expectations.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions including, without limitation, the
factors described under "Risk Factors" from time to time in our
filings with the Securities and Exchange Commission ("SEC"). Many
of the forward-looking statements contained in this release may be
identified by the use of forward-looking words such as "believe,"
"expect," "anticipate," "should," "planned," "will," "may,"
"intend," "estimated," "aim," "on track," "target," "opportunity,"
"tentative," "positioning," "designed," "create," and "potential,"
among others. Important factors that could cause actual results to
differ materially from the forward-looking statements we make in
this release are set forth in other reports or documents that we
file from time to time with the SEC, and include, but are not
limited to:
- our ability to sustain and grow revenues and cash flow from
operations by offering video, Internet, telephone, advertising and
other services to residential and commercial customers, to
adequately meet the customer experience demands in our markets and
to maintain and grow our customer base, particularly in the face of
increasingly aggressive competition, the need for innovation and
the related capital expenditures and the difficult economic
conditions in the United
States;
- the impact of competition from other market participants,
including but not limited to incumbent telephone companies, direct
broadcast satellite operators, wireless broadband and telephone
providers, digital subscriber line ("DSL") providers, and video
provided over the Internet;
- general business conditions, economic uncertainty or downturn,
high unemployment levels and the level of activity in the housing
sector;
- our ability to obtain programming at reasonable prices or to
raise prices to offset, in whole or in part, the effects of higher
programming costs (including retransmission consents);
- the development and deployment of new products and
technologies;
- the effects of governmental regulation on our business;
- the availability and access, in general, of funds to meet our
debt obligations prior to or when they become due and to fund our
operations and necessary capital expenditures, either through (i)
cash on hand, (ii) free cash flow, or (iii) access to the capital
or credit markets; and
- our ability to comply with all covenants in our indentures and
credit facilities any violation of which, if not cured in a timely
manner, could trigger a default of our other obligations under
cross-default provisions.
All forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by
this cautionary statement. We are under no duty or obligation to
update any of the forward-looking statements after the date of this
release.
SOURCE Charter Communications, Inc.