Summary
Charter Communications, Inc. (CHTR) filed an 8-K on July 2, 2013, primarily detailing two significant events. First, the company amended its Credit Agreement to provide greater flexibility for acquisitions, modify covenants related to affiliate transactions and events of default, and allow for increased revolving commitments. Second, Charter Communications Operating, LLC drew down a new $1.5 billion Term E Loan to finance the acquisition of Bresnan Broadband Holdings, LLC (Optimum West), which was completed on July 1, 2013, for $1.625 billion in cash. These actions demonstrate strategic moves to expand the company's operations and debt structure. The company also disclosed the successful completion of a tender offer for $250 million of Bresnan Broadband Holdings, LLC's 8.00% Senior Notes due 2018, with all notes being tendered. These events represent significant capital deployment and debt management activities by Charter Communications.
Key Highlights
- 1Charter Communications Operating, LLC entered into Amendment No. 3 to its Credit Agreement, enhancing flexibility for acquisitions and modifying covenants.
- 2A new $1.5 billion Term E Loan was established and fully drawn on July 1, 2013, to fund the acquisition of Optimum West.
- 3The acquisition of Optimum West (Bresnan Broadband Holdings, LLC) was completed on July 1, 2013, for $1.625 billion in cash.
- 4The acquisition was financed through the new Term E Loan, existing cash, and a draw on its revolving credit facility.
- 5Charter successfully completed a tender offer for all $250 million of Bresnan Broadband Holdings, LLC's 8.00% Senior Notes due 2018.
- 6The company expects to file financial statements for Optimum West in an amendment to this Form 8-K within 71 days.