Charter Communications announced a series of financial moves, most designed to manage corporate debt. One action is designed to help finance the acquisition of Bresnan Communications from Cablevision.
Some of the proceeds from some of the other maneuvers, notably an offer of $1 billion in notes, will also go to fund general corporate purposes.
That offer is being made by two Charter subsidiaries, CCO Holdings and CCO Holdings Capital. Together referred to as CCO Holdings, they intend to publicly offer $1 billion in aggregate principal amount of senior unsecured notes due 2024. BofA Merrill Lynch will manage the offering.
Charter said it intends to use the proceeds from the sale of these notes for general corporate purposes and to finance a tender offer or redemption by its subsidiaries of the outstanding 7.875 percent senior notes due 2018 of CCO Holdings. The company said that CCO Holdings plans to announce another, separate tender as early as later today for similar purposes.
Meanwhile, another subsidiary, Charter Communications Operating, has launched a new Term Loan F, totaling $1.2 billion and due 2021. The proceeds from Term Loan F will be used, together with other funds, to refinance $527 million principal amount of Term Loan C due 2016, and $744 million principal amount of Term Loan D due 2019.
Simultaneous with that move, Charter Operating is seeking to refinance its existing $741 million Term Loan A with a $750 million Term Loan A-1. The Term Loan A-1 is expected to be due in 2018. Charter Operating is also seeking to increase the size of its Revolving Credit Facility by $150 million to $1.3 billion and extend the facility's maturity to 2018.
Charter also announced that a new Term Loan E Facility was syndicated in connection with its Amended and Restated Credit Agreement, dated April 11, 2012, providing for $1.5 billion of term loans with a final maturity date of August 1, 2020. Proceeds will be used to fund the acquisition of Bresnan Broadband Holdings.