Charter has finished a bond exchange that cancels $5.499bn of long-dated notes and puts $3.406bn of new ones out at 7.087 and 7.337 percent

Charter closed both of its exchange offers on Monday.

The final settlement is recorded in an 8-K accepted at 16:38 Eastern and filed jointly by Charter Communications, CCO Holdings and CCO Holdings Capital Corp. It adds a last tranche to two series of secured notes that were priced and first settled on 12 August. The offers themselves expired at 5 p.m. on 20 August, so this is the tail rather than the body of the transaction.

Put the two settlements together and the shape is clear enough.

What went in

Pool 1 took in seven series of senior secured notes and debentures, maturing between 2029 and 2047 and carrying coupons from 2.250 to 5.375 percent, some issued by Charter's operating companies and some by Time Warner Cable. Holders tendered $2,664,699,000 of them by the early deadline on 5 August and a further $84,390,000 before expiry, $2,749,089,000 in all.

Pool 2 took in five longer series, maturing between 2049 and 2053, at 3.700 to 5.250 percent. Tendered early: $2,689,366,000. Tendered late: $60,634,000. Total, to the dollar, $2,750,000,000.

What came out

Against Pool 1 the issuers put out $1,742,213,000 of new 7.087 percent senior secured notes due 2038. Against Pool 2, $1,663,288,000 of 7.337 percent notes due 2041. Holders took cash alongside the new paper in both offers, and the filing does not say how much.

So $5,499,089,000 of old notes is cancelled and $3,405,501,000 of new notes exists in its place, a reduction of $2,093,588,000 in principal on these series.

Neither pool used its allowance. Charter had authorised up to $2bn of new notes in each, and stopped $257,787,000 short in Pool 1 and $336,712,000 short in Pool 2.

What it costs, and what cannot be worked out

The new notes pay about $245.5m a year between them, on the stated coupons and the stated principal.

What Charter gave up in coupon is not knowable from this document. Each pool listed several eligible series and the filing reports pool totals only, so there is no way to tell how much of the 2.250 percent 2029s went in against the 5.375 percent 2047s. A reader wanting that number has to wait for the next set of accounts.

Interest on both new series falls on 1 March and 1 September, first on 1 March 2027. Each is callable at par plus a make-whole premium until three months before maturity and at par after that. Both rank as senior secured obligations, guaranteed by CCO Holdings and the subsidiaries that guarantee the credit agreement, and secured first priority in the same collateral.

The filing gives no reason for the exchange, and none is supplied here.