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Charter Communications Offers Senior Notes

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Charter Communications’ notes

Charter Communications (CHTR) is selling notes to raise funds. The company wants more cash for general corporate purposes. In a press release on June 25, Charter Communications announced that it intends to offer senior unsecured notes due in 2029. The company said, “These notes will form a part of the same series of 5.375% Senior Unsecured Notes issued on May 23, 2019 in the aggregate principal amount of $750 million.”

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In a separate press release on June 25, Charter Communications announced that it intends to offer senior secured fixed-rate notes due in 2049. The company will utilize the total net proceeds from selling the notes for activities including paying down its outstanding debt and buying back some of its shares.

Buyback program

In the first quarter, Charter Communications repurchased 2.9 million shares worth $1.0 billion. Since September 2016, the company has repurchased $20.7 billion worth of its common stock.

Buybacks have numerous potential impacts on a stock like reducing the impact of stock dilution and contributing towards improving the EPS. In the first quarter, Charter Communications’ adjusted EPS rose 58.6% YoY (year-over-year) to $1.11.

In the first quarter, Dish Network’s (DISH) adjusted EPS fell 7.1% YoY to $0.65, while Comcast’s (CMCSA) adjusted EPS rose 22.6% YoY to $0.76.

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