US cableco Charter Communications (NASDAQ:CHTR) has announced plans to offer senior secured notes aimed at partially financing its agreed acquisitions of Time Warner Cable (NYSE:TWC) and Bright House Networks.
The deals, assuming they win merger…
US cableco Charter Communications (NASDAQ:CHTR) has announced plans to offer senior secured notes aimed at partially financing its agreed acquisitions of Time Warner Cable (NYSE:TWC) and Bright House Networks.
The deals, assuming they win merger clearance, would be worth a respective US$56bn and US$10.4bn.
The notes, the value of which was undisclosed, will be due in 2020, 2022, 2025, 2035, 2045 and 2055. A spokesperson was not available before the press deadline.
Charter said it would hold the proceeds in escrow until the deals are closed.
Goldman Sachs, Merrill Lynch, Pierce, Fenner & Smith, Credit Suisse, Deutsche Bank and UBS will act as joint bookrunning managers for the offering.
Last month, the cableco was reported to be marketing US$13.8bn in bridge financing, comprising a US$6bn secured loan and two unsecured facilities of a total US$7.8bn. The bridge facilities were reportedly set to be replaced by bonds.
In a SEC filing late last month, Charter said that up to US$6bn in senior secured first lien bridge facilities, up to US$3.5bn in senior unsecured bridge facilities and up to US$4.3bn in a senior unsecured 364-day loan facility would be made in the event that it is unable to issue bonds of these same three amounts before the TWC deal closes.
According to the filing, the above banks have also agreed to provide senior secured term loan facilities of up to US$15bn and a senior secured revolver of US$1.7bn.
