On Wednesday, Charter Communications’ subsidiary – Charter Communications Operating (“Charter Operating”) – closed on its sale of $546 million principal amount of second-lien notes, due 2014, in a private transaction.
At closing, the amount of the notes was upsized from the $500 million that was announced last week (story here).
The proceeds from the sale of the notes were used to repay, but not permanently reduce, the outstanding debt balances under the existing revolving credit facility of Charter Operating, the company said.
Also last week, Charter Operating planned to borrow up to $275 million principal amount of incremental term loans under the Charter Operating credit facilities, but yesterday the company announced that it had closed on $500 million.
The term loans will be used for general corporate purposes, the company said. The loans will have a final maturity of March 6, 2014, and prior to this date will amortize in quarterly principal installments totaling 1 percent annually beginning on June 30.
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