Charter Communications, Inc. (NASDAQ: CHTR) today announced that its subsidiary, Charter Communications Operating, LLC ("CCO") entered into an amendment to its Credit Agreement raising a $1.7 billion Term A-3 Loan and increasing its revolving credit facility to $4.75 billion, from $4.0 billion. In addition, 86% of the existing Term A-2 Loan converted their outstanding Term A-2 Loans into the new Term A-3 Loan, which matures on March 29, 2024 and 95% of the $4.75 billion revolving credit facility also matures on March 29, 2024. Remaining portions of the Term A-2 Loan and revolving credit facility mature on March 31, 2023. Pricing on the Term A-3 Loan and the revolving credit facility was set at LIBOR plus 150 basis points.
Charter intends to use the net proceeds from the new credit facilities for general corporate purposes, including to fund potential buybacks of Class A common stock of Charter or common units of Charter Communications Holdings, LLC and to repay certain indebtedness, including to repurchase, redeem or repay at maturity Time Warner Cable, LLC's 8.250% senior notes due 2019 and/or to repay a portion of the outstanding balance under CCO's revolving credit facility.
Bank of America, N.A., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, N.A., Mizuho Bank Ltd., MUFG Bank, Ltd. (f/k/a The Bank of Tokyo-Mitsubishi UFG, Ltd.)., RBC Capital Markets, TD Securities (USA) LLC and Wells Fargo Securities, LLC were the Joint Lead Arrangers and Joint Bookrunners for the new facilities.
About Charter
Charter Communications, Inc. (NASDAQ: CHTR) is a leading broadband communications company and the second largest cable operator in the United States. Charter provides a full range of advanced residential broadband services, including Spectrum TV® programming, Spectrum Internet®, Spectrum Voice®, and Spectrum Mobile™. Under the Spectrum Business® brand, Charter provides scalable, and cost-effective broadband communications solutions to small and medium-sized business organizations, including Internet access, business telephone, and TV services. Through the Spectrum Enterprise brand, Charter is a national provider of scalable, fiber-based technology solutions serving many of America's largest businesses and communications service providers. Charter's advertising sales and production services are sold under the Spectrum Reach® brand. Charter's news and sports networks are operated under the Spectrum Networks brand. More information about Charter can be found at newsroom.charter.com.
