Charter Communications (NASDAQ: CHTR) announced that it has closed on a $3.5 billion credit facility that will be used to help it finance its acquisition of 1.5 million subscribers from Time Warner Cable (NYSE: TWC).
Borrowing from Goldman Sachs Bank USA, BofA Merrill Lynch, Credit Suisse Securities and other institutional lenders, Charter's loan comes with a maturity date of Sept. 12, 2021.
The TWC swap is part of a larger series of transactions tied to Comcast's proposed acquisition of TWC. Agreed to in April, the complex series of deals will see Charter double its footprint through subscriber acquisitions, as well as the launch of a joint venture with Comcast (NASDAQ: CMCSA), GreatLand Connections (formerly "SpinCo"), for which Charter controls a 33 percent stake.
The funds will stay in escrow until the Comcast/TWC merger is given the OK and the deals are executed.
Pricing on the new term loans was set at LIBOR plus 350 basis points, with a 75 bps LIBOR floor.
- read this Charter press release
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