8-KMaterial AgreementsFinancial Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Apr 25, 2013)

Filed April 25, 2013For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on April 25, 2013, to report on a material amendment to its Credit Agreement. On April 22, 2013, its indirect subsidiary, Charter Operating, LLC, entered into Amendment No. 2, which significantly restructured its existing credit facilities. This amendment introduced a new $750 million Term A-1 Loan, which was fully drawn on the same day to prepay existing Term A Loans. Additionally, the company replaced its prior revolving credit commitments with new ones totaling $1.3 billion. These actions are primarily aimed at refinancing existing debt and providing capital for general corporate purposes. The new Term A-1 Loans and the new Revolving Commitments both mature on April 22, 2018. This refinancing activity suggests a strategic move by Charter Communications to manage its debt structure, potentially optimizing its interest expenses and ensuring liquidity for its ongoing operations. Investors should monitor the terms and covenants associated with these new credit facilities.

Key Highlights

  • 1Charter Communications' indirect subsidiary, Charter Operating, LLC, entered into Amendment No. 2 to its Credit Agreement on April 22, 2013.
  • 2A new Term A-1 Loan tranche of $750 million was established and fully drawn on April 22, 2013.
  • 3The proceeds from the new Term A-1 Loan were used to prepay and terminate existing Term A Loans.
  • 4Existing revolving credit commitments were replaced with new Revolving Commitments totaling $1.3 billion.
  • 5The new Revolving Commitments were used to refinance existing revolving loans, pay transaction fees, and for general corporate purposes.
  • 6Both the new Term A-1 Loans and the new Revolving Commitments have a maturity date of April 22, 2018.
  • 7Interest rates on the new Term A-1 Loans and Revolving Loans are tied to the Eurodollar Rate plus 2.00% or ABR plus 1.00%.

Frequently Asked Questions

This 8-K filing reports on a material amendment to Charter Communications' existing Credit Agreement, specifically Amendment No. 2, which involved the creation of new debt facilities and the refinancing of existing ones.

The amendment introduced a new $750 million Term A-1 Loan, which was fully drawn, and replaced existing revolving credit facilities with new ones totaling $1.3 billion. The new Term A-1 Loans were used to pay off old Term A Loans, and the new revolving credit was used for refinancing, fees, and general corporate purposes.

Both the new Term A-1 Loans and the new Revolving Commitments established under Amendment No. 2 mature on April 22, 2018.

This refinancing indicates Charter Communications is actively managing its debt structure, likely to optimize interest costs, extend maturity dates, and ensure sufficient liquidity for its business operations and potential growth initiatives. It shows a proactive approach to its capital management.