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Merrill Lynch, Others Arrange Charter Communications $3.8B Credit Facilities

August 25, 2015, 07:06 AM
Filed Under: Telecom

Charter Communications announced that its subsidiary, CCO Safari III, LLC, entered into a $1.0 billion Term Loan H senior secured credit facility and a $2.8 billion Term Loan I senior secured credit facility, each pursuant to the terms of the Charter Communications Operating, LLC Amended and Restated Credit Agreement, providing for $3.8 billion of term loans in the aggregate. The final maturity date of the Term Loan H is August 24, 2021, and the final maturity date of the Term Loan I is January 24, 2023. Pricing on the new Term Loan H was set at LIBOR plus 250 basis points, with a 75bps LIBOR floor. Pricing on the new Term Loan I was set at LIBOR plus 275 basis points, with a 75bps LIBOR floor. Term Loan H and Term Loan I were each issued with 0.25% of original issue discount.

Charter intends to use the net proceeds from the new term loans to partially finance Charter's previously announced transactions with Time Warner Cable Inc. (NYSE: TWC) and Bright House Networks, LLC. The proceeds from the new term loans have been placed in escrow at CCO Safari III, LLC until the closing of the transaction between Charter and Time Warner Cable Inc., at which time the loans will be assumed by Charter's subsidiary, Charter Communications Operating, LLC.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Goldman Sachs Lending Partners, LLC, Deutsche Bank Securities Inc. and UBS Securities LLC were the Joint Lead Arrangers and Joint Bookrunners for the new facilities.

Charter is a leading broadband communications company and the fourth-largest cable operator in the United States. Charter provides a full range of advanced broadband services, including advanced Charter Spectrum TV® video entertainment programming, Charter Spectrum Internet® access, and Charter Spectrum Voice®. Spectrum Business similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, business telephone, video and music entertainment services, and wireless backhaul.

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