PROSPECTUS SUPPLEMENT
(to Prospectus dated December 22, 2017)
$2,000,000,000
Charter Communications Operating, LLC
Charter Communications Operating Capital Corp.
$1,250,000,000 5.050% Senior Secured Notes due 2029
$750,000,000 5.750% Senior Secured Notes due 2048
Charter Communications Operating, LLC, a Delaware limited liability company (“CCO”), and Charter Communications Operating Capital Corp., a Delaware corporation (“CCO Capital” and, together with CCO, the “Issuers”), are offering $1,250,000,000 aggregate principal amount of 5.050% Senior Secured Notes due 2029 (the “2029 Notes”) and $750,000,000 aggregate principal amount of 5.750% Senior Secured Notes due 2048 (the “2048 Notes” and, together with the 2029 Notes, the “Notes”). The 2029 Notes will mature on March 30, 2029, and the 2048 Notes will mature on April 1, 2048. The Issuers will pay interest on the 2029 Notes on each March 30 and September 30, commencing September 30, 2019 and will pay interest on the 2048 Notes on each April 1 and October 1, commencing April 1, 2019.
The Issuers may redeem some or all of the 2029 Notes at any time prior to December 30, 2028 at a price equal to 100% of the principal amount of the 2029 Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date and a “make-whole” premium, as described in this prospectus supplement. The Issuers may redeem some or all of the 2029 Notes at any time on or after December 30, 2028 at a price equal to 100% of the principal amount of the 2029 Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date, as described in this prospectus supplement. There is no sinking fund for the 2029 Notes.
On April 3, 2018, the Issuers issued $1,700,000,000 aggregate principal amount of Senior Secured Notes due 2048 (the “Existing 2048 Notes”). The 2048 Notes offered hereby will be issued as additional notes under the indenture governing the Existing 2048 Notes, fully fungible with the Existing 2048 Notes, treated as a single class for all purposes under the indenture governing the Existing 2048 Notes, and issued under the same CUSIP numbers as the Existing 2048 Notes. Unless the context requires otherwise, references herein to the “2048 Notes” include the 2048 Notes offered hereby and the Existing 2048 Notes.
The Issuers may redeem some or all of the 2048 Notes at any time prior to October 1, 2047 at a price equal to 100% of the principal amount of the 2048 Notes redeemed, plus accrued and unpaid interest, if any, to the redemption date and a “make-whole” premium, as described in this prospectus supplement. The Issuers may redeem some or all of the 2048 Notes at any time on or after October 1, 2047 at a price equal to 100% of the principal amount of the 2048 Notes to be redeemed, plus accrued and unpaid interest, if any, to the redemption date, as described in this prospectus supplement. There is no sinking fund for the principal amount of the 2048 Notes.
The Notes will be the Issuers’ senior secured obligations and will rank equally in right of payment with all of the Issuers’ existing and future senior debt. The Notes will be effectively senior to the Issuers’ unsecured debt to the extent of the value of the assets securing the Notes and structurally subordinated to the debt and other liabilities of the Issuers’ subsidiaries that do not guarantee the Notes. The Notes will be guaranteed (i) on a senior secured basis by all of the subsidiaries of CCO and CCO Capital that guarantee the obligations of CCO under the Credit Agreement (as defined herein) (such subsidiaries, the “Subsidiary Guarantors”) and (ii) on a senior unsecured basis by CCO Holdings, LLC, a Delaware limited liability company (“CCO Holdings”). The Notes and the guarantees will be secured by apari passu, first priority security interest, subject to permitted liens, in the Issuers’ and the Subsidiary Guarantors’ assets that secure obligations under the Credit Agreement, the Existing TWC Notes and the Existing Secured Notes (each as defined below under “Certain Definitions”).
This prospectus supplement includes additional information about the terms of the Notes, including optional redemption prices and covenants.
See “Risk Factors,” which begins on page S-10 of this prospectus supplement and page 4 of the accompanying prospectus, for a discussion of certain of the risks you should consider before investing in the Notes.
| | | | | | | | | | | | | | | | |
| | Per 2029 Note | | | Total | | | Per 2048 Note | | | Total | |
Public offering price | | | 99.935 | %(1) | | $ | 1,249,187,500 | (1) | | | 94.970 | %(2) | | $ | 712,275,000 | (2) |
Underwriting discount | | | 0.625 | % | | $ | 7,812,500 | | | | 0.594 | % | | $ | 4,455,000 | |
Estimated proceeds to us, before expenses | | | 99.310 | %(1) | | $ | 1,241,375,000 | (1) | | | 94.376 | %(2) | | $ | 707,820,000 | (2) |
(1) | Plus accrued interest from January 17, 2019, if settlement occurs after that date. |
(2) | Plus accrued interest from October 1, 2018. |
Neither the Securities and Exchange Commission (the “SEC”) nor any state securities commission has approved or disapproved of these securities or determined if this prospectus supplement or the accompanying prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The Issuers expect that delivery of the Notes will be made in New York, New York on or about January 17, 2019.
Joint Book-Running Managers
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Citigroup | | Deutsche Bank Securities |
Credit Suisse | | Mizuho Securities | | Morgan Stanley | | BofA Merrill Lynch |
Goldman Sachs & Co. LLC | | RBC Capital Markets | | UBS Investment Bank | | Wells Fargo Securities |
Co-Managers
| | | | | | |
MUFG | | TD Securities | | Scotiabank | | SMBC Nikko |
SunTrust Robinson Humphrey | | Credit Agricole CIB | | US Bancorp | | LionTree |
Academy Securities | | MFR Securities, Inc. | | Ramirez & Co., Inc. | | The Williams Capital Group, L.P. |
The date of this prospectus supplement is January 14, 2019.