Charter Communications, Inc. (NASDAQ:CHTR) announced that its subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. (collectively, the “Issuers”), intend to offer $1.0 billion in aggregate principal amount of senior unsecured notes due 2026 (the “New Notes”).
Charter intends to use the net proceeds from the New Notes to repurchase or redeem a portion of the Issuers’ outstanding 7.000% Senior Notes due 2019 and 7.375% Senior Notes due 2020 and pay related fees and expenses. Charter intends to use the proceeds from the Company’s February 2016 issuance of $1.7 billion of senior unsecured notes due 2024 for one or more of the following: (i) to repurchase or redeem any of the Issuers’ outstanding 7.000% Senior Notes due 2019 and 7.375% Senior Notes due 2020 and pay any related fees and expenses, (ii) to repurchase or redeem a portion of the Issuers’ outstanding 6.500% Senior Notes due 2021 and pay related fees and expenses and (iii) for general corporate purposes. Any redemption or repurchase of the Issuers’ outstanding 6.500% Senior Notes due 2021 would not take place until after the Company determines the amount, if any, of the incremental cash proceeds to Time Warner Cable Inc, (“TWC”) stockholders if they were to elect $115 per share in cash rather than $100 per share in connection with the previously announced transaction with TWC.
The New Notes will be sold to qualified institutional buyers in reliance on Rule 144A and outside the United States to non-U.S. persons in reliance on Regulation S. The New 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. (Original Source)
Shares of Charter Communications closed yesterday at $204.97, up $1.66 or 0.82%. CHTR has a 1-year high of $206.63 and a 1-year low of $156.13. The stock’s 50-day moving average is $190.15 and its 200-day moving average is $183.04.
On the ratings front, Charter has been the subject of a number of recent research reports. In a report issued on April 4, Wells Fargo analyst Marci Ryvicker reiterated a Buy rating on CHTR. Separately, on March 29, UBS’s John Hodulik reiterated a Buy rating on the stock and has a price target of $250.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Marci Ryvicker and John Hodulik have a total average return of 23.6% and 18.8% respectively. Ryvicker has a success rate of 82.7% and is ranked #67 out of 3784 analysts, while Hodulik has a success rate of 86.8% and is ranked #167.
Overall, 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $230.00 which is 12.2% above where the stock closed yesterday.
Charter Communications, Inc. provides entertainment, information and communications solutions to residential and commercial customers. The company offers cable video programming services, such as basic and digital video, premium channels, OnDemand, pay-per-view, high definition television, digital video recorder, and online video services.