STAMFORD, Conn. - Charter Communications , Inc. (NASDAQ: NASDAQ:CHTR) has initiated a cash tender offer to repurchase up to $1.7 billion of its 4.908% senior secured notes due in 2025. The buyback is part of Charter's financial management strategy, aiming to manage its debt obligations effectively.
The tender offer, which commenced today, is detailed in the Offer to Purchase dated May 9, 2024. Holders of the notes, identified by specific CUSIP numbers, are invited to tender their securities for purchase by the company. The offer includes an Early Tender Premium of $30.00 per $1,000 principal amount for notes tendered prior to the Early Tender Time.
The offer will expire on June 7, 2024, unless extended or terminated by the company. The Early Tender Time is set for 5:00 p.m., New York City time, on May 22, 2024, with the Withdrawal Deadline occurring at the same time. Notes tendered by the Withdrawal Deadline may be withdrawn at any time up to that deadline but not afterwards.
The purchase price for the notes will be determined by a fixed spread over the yield of a corresponding U.S. Treasury Security, as calculated by Morgan Stanley (NYSE:MS) & Co. LLC, the Dealer Manager for the offer. The final purchase price will include accrued and unpaid interest up to, but not including, the settlement date, which is expected to be as early as May 24, 2024, for the Early Settlement Date.
Charter Communications, a leading broadband connectivity company, operates under the Spectrum brand and serves over 32 million customers across 41 states. The company provides a range of services, including internet, TV, mobile, and voice, as well as tailored advertising and production through Spectrum Reach.
The information in this article is based on a press release.
InvestingPro Insights
Charter Communications (NASDAQ: CHTR) has been actively managing its financial portfolio, as evidenced by its recent tender offer for debt repurchase. Keeping an eye on the company's financial health and market performance is essential for investors, especially in light of its strategic maneuvers. Here are some insights from InvestingPro that could help investors gauge Charter's current market standing and future outlook:
Charter's management has demonstrated confidence in the company by aggressively buying back shares, a sign that they believe in the long-term value of the company. Additionally, Charter has been identified as a prominent player in the Media industry, which could suggest resilience and potential for growth despite the competitive landscape.
InvestingPro Data shows that Charter Communications has a market capitalization of $43.95 billion and is trading at a P/E ratio of 8.75. Over the last twelve months as of Q1 2024, the company has generated revenue of $54.63 billion, with a modest growth rate of 0.29%. These figures underscore Charter's substantial presence in the market, although growth appears to be at a slower pace. The company's gross profit margin stands at 39.07%, indicating a strong ability to retain earnings from its revenue.
Lastly, it's worth noting that Charter does not pay a dividend to shareholders, which could influence investment decisions for those seeking regular income streams. However, for those interested in capital gains, the company's stock has taken a big hit over the last six months, presenting potential for upside if the company's strategic initiatives prove successful.
For more detailed analysis and additional InvestingPro Tips on Charter Communications, visit InvestingPro. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 9 additional InvestingPro Tips available for Charter, providing deeper insights into the company's financial health and market performance.
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