US cableco Charter Communications is reportedly marketing US$13.8bn in loans to help fund its planned US$56bn purchase of larger rival Time Warner Cable (TWC).
The bridge financing consists of a US$6bn secured loan and two unsecured facilities of a…
US cableco Charter Communications is reportedly marketing US$13.8bn in loans to help fund its planned US$56bn purchase of larger rival Time Warner Cable (TWC).
The bridge financing consists of a US$6bn secured loan and two unsecured facilities of a total US$7.8bn, Bloomberg reported. The bridge facilities will eventually be replaced by bonds.
Credit Suisse, Goldman Sachs, Bank of America Merrill Lynch, Deutsche Bank and UBS are working on the transaction, according to the report. Investors have until 24 June to commit to the deal.
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.
John Malone’s Charter, the fourth-largest cableco, agreed to buy TWC, the number two player, in late May. At the time, it said the cash-and-stock deal values New York-based TWC at US$78.7bn, including debt.
Charter said it expects the transaction, which is expected to face strict scrutiny from federal regulators, to close by the end of the year.
In addition, Charter has agreed to buy smaller cableco Bright House Networks for US$10.4bn.
