Charter Communications has launched a US$2.5bn offering of senior unsecured notes to complete the financing of its acquisitions of Time Warner Cable and Bright House Networks, just weeks ahead of the Fed meeting to discuss raising interest rates.
Charter Communications (
The placement comes just weeks before the US Federal Reserve meets to discuss a potential rise in interest rates, which its chairwoman Janet Yellen has said is a “live possibility”.
Pricing of the 11-year bond is expected to take place before the end of the week. Proceeds will be put into escrow alongside the proceeds generated from other acquisition financing transactions until Charter is in a position to close the takeovers.
In August Charter inked two loans totalling US$3.8bn following a mammoth six tranche US$15.5bn high-yield note issue in July.
Goldman Sachs, BofA Merrill Lynch, Credit Suissé, Deutsche Bank and UBS have been working on the financing for Charter.
The John Malone-backed cableco agreed to buy TWC and Bright House Networks for US$56bn and US$10.4bn respectively in late May. If approved by regulators, the deal will create the country’s second largest cableco behind Comcast. Charter and TWC do not expect Federal regulators to finish their review until Q1 2016.