Summary
Comcast Corporation (CMCSA) announced on June 6, 2012, the execution of a new $6.25 billion revolving credit agreement, replacing its previous $6.8 billion facility. This new agreement, which matures on June 6, 2017, provides Comcast and its subsidiary, Comcast Cable Communications, LLC, with access to funds for general corporate purposes. The change in credit facilities, while reducing the total available amount by $550 million, reflects a strategic adjustment in the company's financing structure.
Key Highlights
- 1Comcast entered into a new $6.25 billion revolving credit agreement on June 6, 2012.
- 2The new agreement replaces a prior $6.8 billion revolving credit facility.
- 3The credit facility has a maturity date of June 6, 2017.
- 4The credit agreement is available for general corporate purposes for Comcast and Comcast Cable Communications, LLC.
- 5As of the agreement date, $456 million in letters of credit were outstanding, a continuation from the prior agreement.
- 6The agreement includes a financial covenant requiring a consolidated total indebtedness to annualized EBITDA ratio not to exceed 5.75:1.00.
- 7The new credit agreement is guaranteed by certain wholly owned subsidiaries holding cable communications segment assets.
Frequently Asked Questions
The new revolving credit agreement is intended for general corporate purposes for Comcast Corporation and its subsidiary, Comcast Cable Communications, LLC.
The new revolving credit agreement has a borrowing capacity of $6.25 billion, which is a reduction from the prior $6.8 billion facility.
Yes, the agreement requires Comcast and its restricted subsidiaries to maintain a consolidated total indebtedness to annualized EBITDA ratio of no more than 5.75:1.00.
The new revolving credit agreement terminates on June 6, 2017.