8-KMaterial AgreementsFinancial EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Dec 30, 2016)

Filed December 30, 2016For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on December 30, 2016, to report on an amendment to its credit agreement. This amendment, effective December 23, 2016, primarily involves modifications to its existing credit facilities, including the introduction of new loan tranches and adjustments to interest rates and maturity dates. These changes are being made to optimize Charter's debt structure and potentially lower borrowing costs. Key changes include the replacement of existing revolving commitments and term loans with new 'Term A-1', 'Term H-1', and 'Term I-1' loans, along with updated revolving commitments. The amendment also introduces more favorable interest rate margins for certain loan types and extends the maturity dates for the Term H-1 and Term I-1 loans. These adjustments suggest a proactive approach by Charter to manage its leverage and maintain financial flexibility.

Key Highlights

  • 1Amendment No. 1 to the Amended and Restated Credit Agreement was entered into on December 23, 2016.
  • 2The amendment replaces existing revolving commitments, Term A Loans, Term H Loans, and Term I Loans with new corresponding loan tranches (Term A-1, Term H-1, Term I-1).
  • 3Interest rate margins have been reduced for Revolving Loans and Term A-1 Loans (Eurodollar Rate plus 1.75% or ABR plus 0.75%).
  • 4Interest rate margins have also been reduced for Term H-1 Loans and Term I-1 Loans, offering more favorable terms compared to previous rates.
  • 5The maturity date for Term H-1 Loans has been extended to January 15, 2022 (from August 24, 2021).
  • 6The maturity date for Term I-1 Loans has been extended to January 15, 2024 (from January 24, 2023).
  • 7These amendments are intended to optimize Charter's debt structure and financial flexibility.

Frequently Asked Questions

This 8-K filing reports on an amendment to Charter Communications' credit agreement. The amendment introduces new loan facilities, adjusts interest rates, and extends maturity dates for certain debt obligations, aiming to improve the company's debt structure and financial flexibility.

The filing indicates a restructuring of existing credit facilities rather than the immediate incurrence of entirely new debt. Existing commitments and loans are being replaced with new ones that have updated terms, including interest rates and maturity dates.

Yes, the amendment includes reductions in interest rate margins for several loan types, such as revolving loans and Term A-1 loans, which suggests the potential for lower borrowing costs. The specific impact will depend on the amount drawn under these facilities and prevailing interest rate conditions.

Yes, the maturity dates for the Term H-1 Loans have been extended to January 15, 2022, and for the Term I-1 Loans to January 15, 2024. This provides Charter with longer-term access to these credit facilities.