The notes will bear interest of 5.125% a year – saving Charter money, as the proceeds will be used to pay existing notes on which it was paying 6.625%.
The notes are being sold to qualified institutional buyers, and Charter expects to close the offering on 6 February, 10 days before the company’s planned conference call on its fourth quarter and full year earnings.
Charter is the second biggest cable operator in the US, just behind Comcast. Liberty Media owner John Malone is a major shareholder through a separate company called Liberty Broadband.
Charter has expanded significantly in the past two years by buying both Time Warner Cable and Bright House Networks for a total of $65.5 billion.
Eight years ago Charter filed for bankruptcy protection, emerging at the end of November 2009, with $8 billion less debt. Previous shareholders’ stock was extinguished.