Summary
Charter Communications, Inc. (CHTR) reported on March 14, 2008, via an 8-K filing, significant debt-related activities. The company's subsidiary, Charter Communications Operating, LLC, has agreed to issue approximately $520 million in 10.875% senior second lien notes due 2014 at a slight discount. The net proceeds from this issuance are earmarked for repaying outstanding debt under the existing revolving credit facility, though not for permanent debt reduction. In addition to the note issuance, Charter Operating has also arranged for $500 million in incremental term loans under its existing credit facilities. These proceeds will be used to reduce borrowings on the revolving credit facility and for general corporate purposes. The company anticipates the closing of these incremental term loans within approximately one week. These transactions indicate active management of the company's debt structure and liquidity.
Key Highlights
- 1Charter Communications Operating, LLC to issue $520 million in 10.875% senior second lien notes due 2014.
- 2Notes will be sold at approximately 96.1% of their principal amount.
- 3Proceeds from the notes will be used to repay outstanding debt under the revolving credit facility.
- 4Charter Operating has arranged for $500 million in incremental term loans.
- 5Proceeds from the incremental term loans will reduce revolving credit facility borrowings and fund general corporate purposes.
- 6The incremental term loans are expected to close in approximately one week.
- 7Transactions reflect active debt management and liquidity initiatives.