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ITEM 1.01.
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ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
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Issuance of 5.375% Senior Notes due 2029
On May 23,
2019 (the “Closing Date”), CCO Holdings, LLC (“CCO Holdings”) and CCO Holdings Capital Corp. (together with CCO Holdings, the “Issuers”), subsidiaries of Charter Communications, Inc. (the “Company”), issued
$750.0 million aggregate principal amount of 5.375% Senior Notes due 2029 (the “Notes”). The Notes were sold to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A and outside the United States to
non-U.S.
persons in reliance on Regulation S. 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 of the Securities Act and applicable state securities laws.
In connection therewith, the Issuers entered into the below agreements.
Indenture
On the Closing Date, the
Issuers entered into a base indenture (the “Base Indenture”) with The Bank of New York Mellon Trust company, N.A., as trustee (the “Trustee”), providing for the issuance of senior notes generally. The Base Indenture is
supplemented by the First Supplemental Indenture entered into on the Closing Date, by and among the Issuers and the Trustee (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”) providing for
the issuance of the Notes and the terms thereof. The Indenture provides, among other things, that the Notes are general unsecured obligations of the Issuers. The Notes are not guaranteed.
Interest is payable on the Notes on each June 1 and December 1, commencing December 1, 2019.
At any time and from time to time prior to June 1, 2024, the Issuers may redeem the outstanding Notes in whole or in part at a redemption price equal to
100% of the principal amount thereof plus accrued and unpaid interest and special interest, if any, on such Notes to the redemption date, plus a make-whole premium. On or after June 1, 2024, the Issuers may redeem some or all of the outstanding
Notes at redemption prices set forth in the First Supplemental Indenture. In addition, at any time prior to June 1, 2022, the Issuers may redeem up to 40% of the of the Notes using proceeds from certain equity offerings at a redemption price,
as determined by the Issuers, equal to 105.375% of the principal amount thereof, plus accrued and unpaid interest and special interest, if any, on such Notes to the redemption date, provided that certain conditions are met.
The terms of the Indenture, among other things, limit the ability of the Issuers to incur additional debt and issue preferred stock; pay dividends or make
other restricted payments; make certain investments; grant liens; allow restrictions on the ability of certain of their subsidiaries to pay dividends or make other payments; sell assets; merge or consolidate with other entities; and enter into
transactions with affiliates.
Subject to certain limitations, in the event of a Change of Control (as defined in the First Supplemental Indenture), the
Issuers will be required to make an offer to purchase all of the Notes at a price equal to 101% of the aggregate principal amount of the Notes repurchased, plus accrued and unpaid interest and special interest, if any, to the date of repurchase
thereof.
The Indenture provides for customary events of default, which include (subject in certain cases to customary grace and cure periods), among
others, nonpayment of principal or interest; breach of other covenants or agreements in the Indenture; failure to pay certain other indebtedness; failure to pay certain final judgments; failure of certain guarantees to be enforceable; and certain
events of bankruptcy or insolvency. Generally, if an event of default occurs, the Trustee or the holders of at least 30% in aggregate principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately.
Registration Rights Agreement
In connection with the
sale of the Notes, the Issuers entered into an Exchange and Registration Rights Agreement with respect to the Notes, dated as of the Closing Date (the “Registration Rights Agreement”), with Deutsche Bank Securities Inc., as representative
of the several Purchasers (as defined in the Registration Rights Agreement). Under the Registration Rights Agreement, the Issuers have agreed, in certain circumstances, to file a registration statement with respect to an offer to exchange the Notes
for a new issue of substantially identical notes registered under the Securities Act, to cause the exchange offer registration statement to be declared effective and to consummate the exchange offer no later than 450 days following the Closing Date.
The Issuers may be required to provide a shelf registration statement to cover resales of the Notes under certain circumstances. If the foregoing obligations are not satisfied, the Issuers may be required to pay holders of the Notes additional
interest at a rate of 0.25% per annum of the principal amount thereof for 90 days immediately following the occurrence of any registration default. Thereafter, the amount of additional interest will increase by an additional 0.25% per annum of the
principal amount thereof to 0.50% per annum of the principal amount thereof until all registration defaults have been cured.