Corporate Finance

Charter operating issuers complete four-series senior secured notes sale

Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. completed the issuance and sale of senior secured notes due in 2032, 2034, 2036 and 2056.

By Carter Hayes ยท

Key takeaways

  • The issuers completed the issuance and sale of four series of senior secured notes on August 18, 2026.
  • The notes carry coupon rates of 6.050%, 6.600%, 6.950% and 7.850%, with maturities spanning 2032 through 2056.
  • Interest is scheduled for payment each February 15 and August 15, beginning February 15, 2027.
  • The notes and related guarantees are secured by first-priority interests in assets that also secure obligations under CCO's credit agreement, subject to permitted liens.

Four note series issued

Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. issued four series of senior secured notes on August 18, 2026. The series are due in 2032, 2034, 2036 and 2056, and have stated interest rates of 6.050%, 6.600%, 6.950% and 7.850%, respectively.

The filing states that the offering and sale were made under an automatic shelf registration statement filed with the Securities and Exchange Commission on July 27, 2026, along with a prospectus supplement dated August 6, 2026. The issuers also entered into a supplemental indenture on the closing date.

Interest and collateral terms

Interest on each series is payable on February 15 and August 15, beginning February 15, 2027. The notes are senior secured obligations of the issuers.

CCO Holdings, LLC and subsidiaries that guarantee CCO obligations under its credit agreement provide senior secured guarantees. The notes and guarantees are secured on a pari passu, first-priority basis by assets that secure obligations under that credit agreement, subject to certain permitted liens.

Redemption and default provisions

The indenture permits redemption of each series before specified dates at principal amount plus accrued and unpaid interest and a make-whole premium. On or after the applicable dates, the stated redemption price is principal amount plus accrued and unpaid interest.

The indenture limits the issuers' ability to grant liens, sell all or substantially all assets, or merge or consolidate, subject to its terms. It also includes events of default covering, among other matters, missed payments, covenant breaches, certain guarantee or collateral issues, and bankruptcy or insolvency events.

Following an event of default, the trustee or holders of at least 30% in aggregate principal amount of the outstanding notes of a series may generally declare that series immediately due and payable.