Charter Communications (NASDAQ: CHTR) has issued a much-anticipated high-grade M&A bond as part of its $31 funding plan for the acquisition of Time Warner Cable (NYSE: TWC).
Goldman Sachs is coordinating the split-rated, six-part U.S. dollar bond, which could be worth up to $15 billion, depending on market conditions. The senior secured notes are part of a funding package of high-yield bonds and bank debt that will go to cable's largest-ever M&A deal, valued at $56 billion without debt, $78.7 billion with debt factored in.
The clarity on Charter's funding situation comes after market chaos in China and Greece kept the company's bond situation in limbo for several weeks.
The bond issuance punctuates a busy week for Charter, as it tries not only to purchase TWC, but also attempts to close its $10.4 billion acquisition of privately held Bright House Networks.
Earlier this week, the No. 4 U.S. MSO sent applications to the California Public Utilities Commission and the New York Public Services Commission, two state agencies that were notably opposed to Comcast's (NASDAQ: CMCSA) failed attempt to purchased TWC earlier this year.
Among a number of pledges made to these agencies, Charter said it would keep TWC's local news channel operation, TWC News, intact. Charter also said it would increase minimum Internet speeds for TWC subscribers in New York and California, as well as upgrade video subscribers to its Spectrum Guide interface and Cisco-made World Box set-tops.
Also this week, FCC chairman Tom Wheeler tapped the review team that will oversee the agencies review of the Charter deals. The team will be led by FCC general counsel Jonathan Sallet.
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