Charter Communications Plans $1.7 Billion Debt Issue - TheStreet

Charter Communications Plans $1.7 Billion Debt Issue

The proceeds will be used in part to buy back some notes that are already outstanding.
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Charter Communications

(CHTR) - Get Report

said a group of its units plan to sell about $1.7 billion of new senior notes in a series of private placements, an announcement that sent the company's shares higher in trading before the opening bell.

The company will use the proceeds from the sale to make offers for some already issued senior notes, convertible senior notes and senior discount notes. The company expects that up to $500 million of the proceeds will be used to repay debt under one or more of the Charter units' credit facilities.

Charter said the tender offers are designed to reduce the company's consolidated debt and extend the maturities of its debt outstanding.

The company is offering to acquire up to $1.106 billion of convertible senior notes. Charter Communications Holdings LLC, an indirect subsidiary of the company, is offering to buy up to $285 million of its senior notes and senior discount notes.

Shares of Charter, a St. Louis-based cable operator, were gaining 57 cents, or 14%, to $4.55 in Instinet premarket trading.