STAMFORD, Conn. - Charter Communications , Inc. (NASDAQ: NASDAQ:CHTR) has disclosed the pricing for its tender offer concerning the company's 4.908% senior secured notes due in 2025. The offer, made through its subsidiaries Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., is part of Charter's strategy to manage its debt.
Eligible note holders who tendered their securities before the early deadline on Wednesday are set to receive a total early offer consideration of $993.94 per $1,000 principal amount, as determined on Thursday. The tender offer is capped at a combined aggregate principal amount of $2.7 billion, excluding accrued interest and related premiums, fees, and expenses.
Due to the oversubscription of the offer at the early tender deadline, the company will accept notes on a pro rata basis, with a proration factor of approximately 0.76954540. Payment for the accepted notes is scheduled for Friday, May 24, 2024, which is the early settlement date. In addition to the total consideration, holders will receive accrued and unpaid interest up to but not including the settlement date.
The tender offer is being managed by Morgan Stanley (NYSE:MS) & Co. LLC, with Global Bondholder Services Corporation acting as the information agent and tender agent. The offer is made solely by the Offer to Purchase, dated May 9, 2024, and is not a recommendation from Charter, its affiliates, or advisors regarding the tendering of notes.
Charter Communications, serving over 32 million customers in 41 states, is a leading broadband connectivity company and cable operator under the Spectrum brand. The company provides a range of services for residential and business customers, including internet, TV, mobile, and voice services, along with tailored advertising and production through Spectrum Reach®.
This announcement is based on a press release statement and does not constitute an offer to sell or the solicitation of an offer to buy any securities. The information provided is for informational purposes only and does not include any recommendations or endorsements.
InvestingPro Insights
In the context of Charter Communications' (NASDAQ: CHTR) recent tender offer for its senior secured notes, a glance at the company's financial health and market performance may offer investors additional insights. Charter has been actively managing its debt, as reflected in the recent pricing of its tender offer, but what do the numbers say about its current status?
InvestingPro data shows Charter Communications with a market capitalization of roughly $42.97 billion and a Price/Earnings (P/E) ratio standing at 8.5. This valuation comes at a time when the company is showing a moderate revenue growth of 0.29% over the last twelve months as of Q1 2024. Despite this growth, the stock has experienced significant volatility, with a six-month price total return of -33.11%, indicating a period of bearish sentiment among investors.
Two InvestingPro Tips that may be particularly relevant for investors considering Charter's tender offer involve the company's share buyback strategy and its current P/E ratio. Management has been aggressively buying back shares, which could be a sign of confidence in the company's value. Additionally, Charter is trading at a high P/E ratio relative to near-term earnings growth, which investors may want to consider when assessing the company's future prospects.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/CHTR, including insights on analyst earnings revisions and the company's liquidity position. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to a total of 9 InvestingPro Tips for Charter Communications.
These metrics and insights could prove invaluable as investors navigate Charter's strategic financial maneuvers and evaluate the company's position in the media industry.
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