Charter to sell $3.5B in bonds to buy TWC systems

Charter Communications (NASDAQ: CHTR) continues to line up the financing it needs to buy cable systems currently covering 1.5 million Time Warner Cable (NYSE: TWC) customers, announcing on Wednesday that it will sell $3.5 billion worth of speculative-grade bonds.

The Stamford, Conn.-based cable company said that, through its CCOH Safari, LLC subsidiary, it will sell $1.5 billion of 5.5 percent, eight-year securities and $2 billion of 5.75 percent, 10-year notes.

The bond-selling follows Charter's acquisition in September of a $3.5 billion credit facility.

After losing a bidding war for TWC to Comcast (NASDAQ: CMCSA), Charter agreed in April to buy pay-TV customers from TWC. Comcast and TWC were interested in selling these subscribers so that their merger could meet regulatory guidelines, which restrict the percentage of market share the newly merged cable giant could have.

Proceeds from the bond sale will be held in escrow until the transactions close.

For more:
- read this Charter press release
- read this Bloomberg story

Related links:
Charter posts 8 percent revenue growth on narrower video sub losses, big broadband gains
Worcester opposes transfer from Charter to Comcast
Charter Communications closes on $3.5B credit facility
SpinCo gets a real name: GreatLand Connections

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