Charter Communications priced a $4.75 billion senior secured notes offering on Wednesday to help fund its $34.5 billion acquisition of Cox Communications, which the company announced in May 2025.
The debt issuance is one component of Charter's financing plan for the all-stock and cash merger. Charter will issue the notes in multiple tranches across different maturity dates, according to the offering announcement. The deal, valued at $34.5 billion including the assumption of Cox's debt, represents the largest cable operator combination in years and would consolidate two of the largest U.S. broadband and video providers.
Charter and Cox announced the definitive merger agreement on May 16, 2025. Under the terms, Charter will pay $1.00 per share in cash and issue shares in an all-stock transaction, with the combined enterprise valued at approximately $34.5 billion. The transaction is expected to close in the second half of 2026, subject to regulatory approval and customary closing conditions.
Cox Communications operates cable systems in 18 states, serving approximately 5.5 million residential customers and 600,000 business customers. The merger would expand Charter's footprint across the country and reduce competitive overlap in several markets. Cox is controlled by the Cox family through a holding company structure.
Charter has been preparing its balance sheet for the acquisition through multiple financing channels. The senior secured notes offering follows earlier debt issuances and equity market activity aimed at assembling the total capital required. Cable operators have historically relied on debt capital markets to fund large-scale M&A transactions given the stable cash flows generated by broadband and video subscribers.
The transaction still requires approval from the Federal Communications Commission and the Department of Justice, which have authority to review combinations of this scale in the telecom sector. Regulators typically examine whether a merger reduces competition in overlapping service areas or raises consumer harm concerns. The two companies operate in different geographic markets in many cases, which may limit overlap scrutiny in certain regions.
Charter raised $4.75 billion in debt at a time of higher interest rates. The maturity profile of the notes and their pricing relative to comparable debt issuances will be disclosed in regulatory filings in the coming days.
