Charter Communications (CHTR) has disclosed a new risk, in the Debt & Financing category.
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Charter Communications faces significant financial risks associated with its plans to fund the cash consideration and assume the indebtedness of Cox Communications. The company is obligated to fund $4.0 billion in cash and assume approximately $12.4 billion of Cox’s net debt, which could be adversely affected by unexpected increases in indebtedness, lower-than-expected operating results, or financial market disruptions. Additionally, credit rating downgrades could trigger a ‘change of control repurchase event,’ requiring Charter to repurchase Cox Notes at a premium, potentially necessitating additional debt financing that may not be available on favorable terms. Failure to manage these risks could lead to defaults on Cox Notes and other Charter indebtedness, posing a substantial threat to its financial stability.
Overall, Wall Street has a Moderate Buy consensus rating on CHTR stock based on 7 Buys, 2 Sells and 3 Holds.
To learn more about Charter Communications’ risk factors, click here.