8-KFinancial EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Financial Obligation (Dec 22, 2011)

Filed December 22, 2011For Securities:CHTR

Summary

On December 19, 2011, Charter Communications, Inc. (CHTR) announced via an 8-K filing that its subsidiary, Charter Communications Operating, LLC, has entered into an Incremental Activation Notice amending its existing credit facility. This action introduces a new tranche of Term A Loan Commitments totaling $750 million, with $250 million drawn immediately for general corporate purposes. The newly established Term A Loans mature on May 15, 2017, and carry an interest rate of LIBOR plus 2.25% or ABR plus 1.25%. This move signals Charter's strategy to secure additional financing and potentially offers flexibility for future debt restructuring, as the Term A lenders have agreed to support certain future amendments to the credit agreement. Investors should monitor the company's use of these funds and its ongoing debt management strategy.

Key Highlights

  • 1Charter Communications Operating, LLC drew $250 million under a new $750 million Term A Loan Commitment on December 19, 2011.
  • 2The new Term A Loan Commitments amend the existing Credit Agreement dated March 18, 1999, as restated March 31, 2010.
  • 3The drawn amount is intended for general corporate purposes.
  • 4The remaining portion of the Term A Loan Commitments is available until March 12, 2012.
  • 5The maturity date for the Term A Loans is May 15, 2017.
  • 6Interest rates for the Term A Loans are set at LIBOR plus 2.25% or ABR plus 1.25%.
  • 7Term A Lenders have agreed to vote in favor of certain future amendments to the Existing Credit Facility.

Frequently Asked Questions

This Form 8-K filing reports on Charter Communications, Inc.'s subsidiary, Charter Communications Operating, LLC, executing an Incremental Activation Notice to amend its credit agreement. This action establishes a new tranche of Term A Loan Commitments, of which $250 million was drawn for general corporate purposes.

Charter secured a new Term A Loan Commitment of $750 million, drawing $250 million on December 19, 2011. The loan matures on May 15, 2017, and bears interest at LIBOR plus 2.25% or ABR plus 1.25%. The remaining $500 million is available for a single drawing until March 12, 2012.

The agreement by Term A Lenders to vote in favor of certain future amendments provides Charter with greater flexibility to modify its credit facility in the future. This could be beneficial for the company's financial restructuring or operational adjustments, suggesting a willingness from lenders to cooperate on potential strategic changes.

The filing details an amendment to an existing Credit Agreement and the establishment of new Term A Loan Commitments. While specific collateral details are not provided in this excerpt, credit agreements typically outline security arrangements. Investors interested in collateral would need to review the referenced Incremental Activation Notice (Exhibit 10.1) for full details.