Charter Communications’ subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp., announced on January 6 2026 that they will issue senior unsecured notes. The proceeds will be used for general corporate purposes, including the full redemption of the company’s 5.500 % Senior Notes due 2026 and a partial redemption of the 5.125 % Senior Notes due 2027. The company also plans to use the funds to support potential buybacks of Charter’s common stock and to cover related fees and expenses.
The new notes will replace a portion of Charter’s existing high‑interest debt, allowing the company to extend the maturity profile of its capital structure. By redeeming the 5.500 % notes due 2026, Charter removes a debt obligation that carries a higher coupon than the new notes are expected to carry, thereby reducing its overall interest expense. The partial redemption of the 5.125 % notes due 2027 further consolidates the company’s debt portfolio and frees up cash that can be deployed to shareholder‑return initiatives.
Charter’s debt‑heavy balance sheet has been a focus of its capital‑management strategy. As of September 30 2025, total debt principal stood at $95.0 billion, giving the company a debt‑to‑equity ratio of 6.33 and an interest‑coverage ratio of 2.66. The company’s split credit rating—investment‑grade for the senior unsecured notes and high‑yield for the senior secured notes—has enabled it to access both markets. In December 2024, Charter amended its credit agreement to extend the maturity of a significant portion of its 2027 debt to 2030 and 2031, a move that signals a proactive approach to extending debt maturities and managing refinancing risk.
Financially, Charter remains profitable. In Q3 2025, the company reported revenue of $13,672 million, slightly down from $13,795 million a year earlier, and net income of $1,137 million, compared with $1,280 million in the prior year. Diluted earnings per share were $8.34 versus $8.82 year‑ago, reflecting the company’s continued focus on cost discipline amid a high‑leverage environment. The new debt issuance is therefore a tool to maintain liquidity and support shareholder value while keeping the company’s leverage within acceptable limits.
The refinancing aligns with Charter’s broader strategy of managing debt maturity and cost. By issuing senior unsecured notes, the company can potentially secure a lower coupon than the existing debt, reduce interest expense, and extend the maturity profile of its capital structure. The proceeds earmarked for share buybacks signal management’s commitment to returning capital to shareholders, a practice that has historically been a key component of Charter’s value‑creation strategy. Together, these actions reinforce Charter’s focus on maintaining a robust balance sheet while continuing to invest in growth opportunities and shareholder returns.
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