Charter Communications has amended its credit agreement to give it more flexibility to pursue acquisitions as speculation about consolidation in the US cable sector heats up.
In an SEC filing Charter said it had modified the facility’s restricted…
Charter Communications has amended its credit agreement to give it more flexibility to pursue acquisitions as speculation about consolidation in the US cable sector heats up.
In an SEC filing Charter said it had modified the facility’s restricted payments covenant allowing it to take on more debt to finance deals.
Bank of America is the administrative agent while Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, JP Morgan, UBS, Morgan Stanley, RBC Capital Markets, US Bank, Goldman Sachs and Suntrust Robinson Humphrey were joint lead arrangers, bookrunners and syndication agents on the agreement, first set up in 1999.
Charter closed its acquisition of Optimum West this week and after John Malone’s Liberty Media bought a 27% stake in the cableco recently more acquisitions have been touted. Liberty has talked up the possibility of consolidation in the sector and has reportedly held talks with Time Warner Cable (TWC) regarding a potential merger.
Meanwhile TWC is reported to be weighing up bids for either Cablevision or Cox Communications.
Connecticut-based Charter recorded revenues of US$7.5bn for last year and is the fourth-largest player in the US cable market.
