Daily News: April 11, 2012

Merrill Lynch, Others Ink Term Loan, Refinance Revolver for Charter

Charter Communications, Inc. announced that on April 11, 2012, its subsidiary, Charter Communications Operating, LLC, entered into a term loan D pursuant to the terms of its Amended and Restated Credit Agreement providing for $750 million of term loans with a final maturity date of May 15, 2019.

Pricing on the new term loans was set at LIBOR plus 300 basis points, and they were issued with 0.5% of original issue discount. The proceeds were used to refinance the company’s existing term loan B-1 and term loan B-2, both due 2014, with the remaining amount used to pay down a portion of its existing term loan C due 2016.

The company concurrently refinanced its existing $1.3 billion extended revolving credit facility due 2015, with a new $1.15 billion revolving credit facility due April 11, 2017, at an interest rate of LIBOR plus 225 basis points.

Additional amounts drawn under the new facility were used to pay transaction related fees and expenses. The company also entered into an amendment and restatement of the credit agreement to reflect the foregoing transactions, as well as certain other modifications in substantially the form agreed to with the term loan A lenders in December 2011 as was disclosed at that time.

Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets, Credit Suisse Securities (USA), Deutsche Bank Securities, J.P. Morgan Securities and UBS Securities served as the joint lead arrangers and bookrunners for the new facilities.