On May 18, 2016, Charter Communications, Inc. (CHTR) merged with Time Warner Cable Inc (TWR). If you have clients that held CHTR prior to the merger you need to handle this stock split a little differently.
What happened
For each share held of TWC prior to the merger, TWC stockholders received either A) $100.00 in cash and shares of the new CHTR equivalent to 0.5409 shares of legacy CHTR, OR B) $115.00 of cash and new CHTR shares equivalent to 0.4562 shares of legacy CHTR. TWC shares will no longer trade on the New York Stock Exchange.
Additionally, each legacy CHTR stockholder received 0.9042 shares of new CHTR (new CUSIP: 16119P108) for each share of legacy CHTR.
If your clients held the original CHTR
If some of your clients held CHTR prior to the merger, first rename the old symbol to create a legacy symbol. If none of your clients held the original CHTR, skip right to the merger exchange wizard.
- From the main Securities tab, select Equities and browse to CHTR.
- Double click on CHTR to open the Security Details
- Change the symbol to CHTR-OLD or CHTR-XX.
- Optional: put a note in the comment field “Prior to TWC merger” to remind you what this is.
- Save and close.
- Create a new CHTR symbol with the Description “Charter Communications, Inc” and the CUSIP: 16119P108.
- Save and close.
Now update the mapping table in the Interface(s). Go to the Interfaces tab and repeat these steps for each broker that held CHTR. (For instance if you have a Schwab client with CHTR and an Ameritrade client with CHTR, you will need to perform these steps in both the Schwab Interface and the Ameritrade Interface).
- Select Paths and Assignments, then Security Codes, browse to CHTR in the symbol column. Hint: Sort by Symbol and then use Control-F to find CHTR.
- Delete each row containing CHTR and CHTR-OLD (or whatever you named the original symbol) under Symbol and/or PC Symbol.
- OK and close
How to use the Merger Exchange Wizard
These tables contain the information needed to use the Merger Exchange Wizard depending on which securities your clients held prior to the merger.
[table]| For clients that held CHTR | |
| Field | Information |
| Merger Date | 05/18/2016 |
| Security Type | Equities |
| Original Company Symbol | CHTR-OLD |
| Original Company Price | $203.36 |
| New Company Type | Equities |
| New Company Symbol | CHTR |
| Share Exchange Ratio | 0.9042 |
| Cash Proceeds | unchecked |
| Fair Market Value | blank |
| Cash Distribution Ratio | blank |
| Conversion Price | $0.00 |
| For clients that held TWC | |
| Field | Information |
| Merger Date | 05/18/2016 |
| Security Type | Equities |
| Original Company Symbol | TWC |
| Original Company Price | $209.56 |
| New Company Type | Equities |
| New Company Symbol | CHTR |
| Share Exchange Ratio | Option A: .48908178 Option B: .41249604 |
| Cash Proceeds | Checked |
| Fair Market Value | $195.71 |
| Cash Distribution Ratio | Option A: $100.00 Option B: $115.00 |
| Conversion Price | $0.00 |
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