Charter Communications Inc. Tuesday called for redemption its 5.75% convertible senior notes due 2005.
The MSO said it will redeem approximately $588 million of notes, representing all of the outstanding notes, at 101.15% of principal amount, plus accrued and unpaid interest to the date of redemption, Dec. 23.
On Monday, Charter closed its issuance of approximately $862.5 million (original principal amount) of convertible senior notes due 2009.
The MSO first announced the offering Nov. 15.
The issuance included approximately $112.5 million (original principal amount) of such notes issued pursuant to an overallotment option granted to the initial purchasers in the offering, Charter said.
The notes have an annual interest rate of 5.875%, payable semiannually, and they will be convertible into 413.2231 shares of Charter class-A common stock per $1,000 original purchase amount of notes, which represents an initial conversion price of approximately $2.42 per share, the company said.
A portion of the proceeds will be used to retire the MSO’s existing $588 million convertible senior notes that are due in October 2005, while the remainder will go to general corporate purposes.