8-KMaterial AgreementsFinancial EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Apr 17, 2012)

Filed April 17, 2012For Securities:CHTR

Summary

This 8-K filing from Charter Communications, Inc. (CHTR) on April 17, 2012, details significant amendments to its credit facilities. The company, through its subsidiary Charter Communications Operating, LLC, entered into an Incremental Activation Notice and a Restatement Agreement to its existing credit facility. These actions resulted in the establishment of a new $750 million Term D Loan, which was fully drawn, and new Revolving Commitments totaling $1.15 billion, with $95 million drawn. The proceeds from the Term D Loan were used to refinance existing debt (Term Loan B-1, B-2, and a portion of Term Loan C). The drawn amounts under the new revolving commitments were used to refinance existing revolving loans, cover transaction fees, and for general corporate purposes. This refinancing aims to optimize the company's debt structure and potentially improve its liquidity position.

Key Highlights

  • 1Charter Communications Operating, LLC executed an Incremental Activation Notice and a Restatement Agreement concerning its credit facility.
  • 2A new $750 million Term D Loan commitment was established and fully drawn on April 11, 2012.
  • 3New Revolving Commitments of $1.15 billion were established, with $95 million drawn on April 11, 2012.
  • 4The Term D Loan proceeds were used to refinance existing Term Loans B-1, B-2, and a portion of Term Loan C.
  • 5Amounts drawn under the new Revolving Commitments were used for refinancing existing revolving loans, transaction fees, and general corporate purposes.
  • 6The Term D Loans mature on May 15, 2019, with interest at LIBOR + 3.00% (1.00% floor) or ABR + 2.00%.
  • 7The New Revolving Commitments terminate on April 11, 2017, with interest at LIBOR + 2.25% or ABR + 1.25%, and a commitment fee of 0.50%.

Frequently Asked Questions

The main purpose of this filing is to report on the material definitive agreement related to amendments to Charter Communications Operating, LLC's existing credit agreement. This includes the creation of new loan tranches and revolving commitments.

Charter's subsidiary, Charter Communications Operating, LLC, fully drew $750 million under a new Term D Loan and drew $95 million under new Revolving Commitments totaling $1.15 billion.

The $750 million Term D Loan was used to refinance existing debt, specifically Term Loan B-1, Term Loan B-2, and a portion of Term Loan C. The $95 million drawn on the new revolving commitments were used to refinance existing revolving loans, pay transaction fees, and for general corporate purposes.

The Term D Loans mature on May 15, 2019, and bear interest at LIBOR plus 3.00% (with a 1.00% floor) or ABR plus 2.00%. The New Revolving Commitments terminate on April 11, 2017, with interest at LIBOR plus 2.25% or ABR plus 1.25%, and a commitment fee of 0.50%.