#United States #Stamford #Charter Communications #Debt Exchange #New Notes

Charter Communications' Early Tender Results

In a significant move for investors, Charter Communications, Inc. (NASDAQ: CHTR) recently announced the early results for its recently initiated debt exchange offers. This financial strategy, aimed at exchanging existing notes for new ones, highlights the company’s proactive approach to managing its debt profile.

Background on the Debt Exchange Offers

Charter’s exchange offers involve two pools of notes designated as Pool 1 and Pool 2. The Pool 1 Offer involves several series of senior secured notes being exchanged for new Senior Secured Notes due in 2038. Conversely, Pool 2 encompasses another series of notes to be exchanged for Senior Secured Notes maturing in 2041.

The goal of these exchange endeavors is to provide existing bondholders with improved options that align better with Charter’s current financial trajectory.

Early Tender Results

According to information provided by D.F. King & Co., the exchange agent, as of August 5, 2026, a significant amount of Pool 1 Notes worth $2,664,740,000 was validly tendered, which accounts for 26.5% of that pool’s outstanding notes. In the Pool 2 Offer, the total amount tendered reached $2,689,377,000, translating to 27.8% of the outstanding Pool 2 Notes. This strong participation from noteholders showcases confidence in Charter’s restructuring plans.

Pool 1 Notes Breakdown

• - 3.500% senior secured notes due 2042: Tendered amount - $323,348,000
• - 3.500% senior secured notes due 2041: Tendered amount - $450,822,000
• - 4.500% senior debentures due 2042 (provided by Time Warner Cable): Tendered amount - $614,423,000
• - 5.375% senior secured notes due 2047: Tendered amount - $778,719,000
• - 2.300% senior secured notes due 2032: Tendered amount - $144,042,000
• - 2.800% senior secured notes due 2031: Tendered amount - $260,060,000
• - 2.250% senior secured notes due 2029: Tendered amount - $93,326,000

Pool 2 Notes Breakdown

• - 3.700% senior secured notes due 2051: Tendered amount - $517,617,000
• - 3.900% senior secured notes due 2052: Tendered amount - $504,449,000
• - 4.800% senior secured notes due 2050: Tendered amount - $864,822,000
• - 5.125% senior secured notes due 2049: Tendered amount - $505,766,000
• - 5.250% senior secured notes due 2053: Tendered amount - $296,723,000

Amendments to the Exchange Offers

To enhance the offerings and respond to the needs of noteholders, Charter has made several amendments to the terms of the exchange. Notably, the Company has increased the consideration available for Eligible Holders who tender their Old Notes after the Early Tender Date but before the Expiration Date, ensuring competitive rewards for participation.

Additionally, the maximum aggregate principal amounts for the New 2038 and New 2041 Notes have been raised from $1.75 billion to $2 billion. This strategic augmentation will accommodate a larger volume of successfully tendered notes, demonstrating Charter’s commitment to flexible debt management amidst financial restructuring.

Important Dates and Next Steps

Eligible Holders should note the following important dates:

• - Early Settlement Date: August 12, 2026, for those who tendered their Old Notes by the Early Tender Date.
• - Expiration Date: August 20, 2026, at 5:00 PM New York City time. Participation after the Withdrawal Deadline after this date will be irrevocable.

The company has also highlighted that the New Notes and related guarantees have not been registered with the SEC, revealing a focused strategy on strategic financing rather than broad public offerings.

Summary

The early tender results and adjustments to Charter's debt exchange offers signal a strong move towards optimizing its financial structure. The company’s adept handling of its corporate debt will likely lead to enhanced financial stability and strengthen its market position in the telecommunications sector. As Charter continues to evolve, stakeholders and investors will be crucial in defining the next steps during this transitional phase.