8-KMaterial AgreementsFinancial EventsOther Events+1

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Aug 28, 2015)

Filed August 28, 2015For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on August 24, 2015, a significant debt financing event through its subsidiary, Charter Communications Operating, LLC. This filing details the activation of a Term H/I Loan Incremental Activation Notice, drawing down $1.0 billion in Term H Loans and $2.8 billion in Term I Loans. These new debt facilities were fully drawn on the event date and are earmarked to partially finance the company's anticipated transactions with Time Warner Cable Inc. and Bright House Networks, LLC. Crucially, the proceeds from these new loans were immediately transferred to a newly formed subsidiary, CCO Safari III, LLC, and placed into an escrow account. This structure ensures the funds are held securely pending the closing of the aforementioned transactions. The Term H Loan matures on August 24, 2021, with an interest rate tied to the Eurodollar Rate plus 2.50% (with a 0.75% floor). The Term I Loan matures on January 24, 2023, and bears interest at the Eurodollar Rate plus 2.75% (with a 0.75% floor). This proactive financing move demonstrates Charter's commitment to securing the necessary capital for its strategic growth initiatives.

Key Highlights

  • 1Charter Communications, Inc. (CHTR) subsidiary drew down $3.8 billion in new term loans: $1.0 billion in Term H Loans and $2.8 billion in Term I Loans on August 24, 2015.
  • 2These new loans are intended to partially finance Charter's proposed transactions with Time Warner Cable Inc. and Bright House Networks, LLC.
  • 3The proceeds from the new loans were immediately placed into an escrow account with a newly formed subsidiary, CCO Safari III, LLC, pending the closing of the transactions.
  • 4The Term H Loan matures on August 24, 2021, with an interest rate of Eurodollar Rate + 2.50% (0.75% floor).
  • 5The Term I Loan matures on January 24, 2023, with an interest rate of Eurodollar Rate + 2.75% (0.75% floor).
  • 6An amendment to the existing credit agreement was made to allow for a subsidiary to assume obligations for these new term loans.
  • 7The filing includes a press release (Exhibit 99.1) announcing the closing of these new term loans.

Frequently Asked Questions

The $3.8 billion in new term loans ($1.0 billion Term H and $2.8 billion Term I) were secured to partially finance Charter's anticipated transactions with Time Warner Cable Inc. and Bright House Networks, LLC.

The proceeds from the new loans were immediately transferred to CCO Safari III, LLC, a newly created indirect subsidiary of Charter, and placed into an escrow account. This ensures the funds are held and available for the completion of the pending transactions.

The Term H Loan matures on August 24, 2021, with interest at the Eurodollar Rate plus 2.50% (0.75% floor). The Term I Loan matures on January 24, 2023, with interest at the Eurodollar Rate plus 2.75% (0.75% floor).

No, this filing indicates that the loans were drawn down and the proceeds were placed in escrow to 'partially finance certain transactions with Time Warner Cable Inc. and Bright House Networks, LLC'. The funds are being held pending the closing of these transactions, implying they have not yet been completed as of August 24, 2015.