US cableco Charter Communications has increased the size of a recently-announced bond offering from US$1.5bn to US$3.5bn.
The issue is split in two tranches of US$1.5bn and US$2bn senior unsecured notes, maturing in 2022 and 2024, respectively.
The…
US cableco Charter Communications has increased the size of a recently-announced bond offering from US$1.5bn to US$3.5bn.
The issue is split in two tranches of US$1.5bn and US$2bn senior unsecured notes, maturing in 2022 and 2024, respectively.
The 2022 notes carry a 5.5% interest rate and were priced at par, while the 2024 notes bear a 5.75% coupon rate and were also priced at par.
Goldman Sachs, Credit Suisse, Deutsche Bank and Merrill Lynch, Pierce, Fenner & Smith acted as joint bookrunning managers for the offering, which is due to close on 5 November, subject to customary conditions.
Proceeds from the issue will be used to finance the acquisition of 1.5 million Time Warner Cable (TWC) video customers from larger rival Comcast.
Earlier this year, Charter agreed to buy subscribers being divested by Comcast and TWC to help them secure regulatory approvals for their planned US$45bn-plus merger.
The deal, the value of which has not been disclosed, will see Charter’s subscriber base increase to 5.7 million, making it the US’ second-largest cable operator.
In mid-September, Charter issued a US$3.5bn senior secured term loan, also to finance the deal.
