Charter Communications Inc. said Tuesday that it has priced its issuance of approximately 27.2 million shares of class-A common stock.
The MSO said the issuance is pursuant to an effective registration statement covering the issuance and sale of up to 150 million shares of Charter class-A common stock, which the company previously agreed to loan to Citigroup Global Markets Ltd. pursuant to a share-lending agreement.
Charter said it expects to issue approximately 27.2 million shares of class-A common stock to Citigroup, which then intends to offer the shares for sale at a price of $1.25 apiece.
The shares are being offered on a "best-efforts" basis. Assuming the sale of all 27.2 million shares by Citigroup, Charter will remain obligated to issue, at Citigroup's request, up to an additional 122.8 million shares in subsequent offerings pursuant to the share-lending agreement.
Charter said it will not receive any of the proceeds from the sale, but under the share-lending agreement, it will receive a loan fee of $0.001 for each share it lends to Citigroup.