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The second largest cable operator in the country charter Communications said Monday it was selling $1.5 billion in debt and could use the new money to pay down existing debt and fund share buybacks.
It plans to close the offering of senior unsecured notes due 2031 on July 9.
The company sold $3 billion worth of senior tickets in April as media companies sought a cash cushion amid the fast-spreading and economically devastating coronavirus pandemic.
Charter had about $79 billion in debt outstanding as of March 31, including $54.6 billion in senior secured debt, according to ratings agency Fitch, which in a note on Monday praised the “strategy focused on The company’s market share focused on improving the overall competitiveness of its video service and leveraging its expanding all-digital infrastructure. Charter improves subscriber metrics, increases revenue and ARPU, and stabilizes operating margins,” said Fitch.
Charter is also the third largest distributor of multi-channel video programming after Comcast and AT&T’s DirecTV with nearly 30 million customers. Despite the pressure on the former wiring harness, its growth in internet, mobile, commercial and video revenue helped push the stock higher. It has gained 42% from a low in April, at the height of Wall Street’s panic over the impact of the virus.
Charter also ranked 18th among the 30 most popular stocks held by hedge funds at the end of the first quarter, according to financial website Insider Monkey.
Shares closed Monday up 1.6%, or $8.60, at $526.29.
