Charter Arranges $500 Million in Incremental Term Loan Financing
March 11 2008 - 11:08PM
Business Wire
Charter Communications, Inc. (NASDAQ:CHTR) (the �Company�)
announced today that its subsidiary, Charter Communications
Operating, LLC (�Charter Operating�), has arranged $500 million
principal amount of incremental term loans (the �Incremental Term
Loans�) under the Charter Operating credit facilities, for net
proceeds of $471 million. The net proceeds of the Incremental Term
Loans will be used to reduce borrowings, but not commitments, under
the revolving portion of the Charter Operating credit facilities
and for general corporate purposes. The Incremental Term Loans will
have a final maturity of March 6, 2014 and prior to this date will
amortize in quarterly principal installments totaling 1% annually
beginning on June 30, 2008. The Incremental Term Loans will bear
interest at LIBOR plus 5.0%, with a LIBOR floor of 3.5%, and will
otherwise be governed by and subject to the existing terms of the
Charter Operating credit facilities. The closing of the Incremental
Term Loans is expected shortly after the completion of the proposed
$520 million principal amount of 2nd lien notes (the �Notes�)
offering by Charter Operating, announced separately this morning.
The Company expects that the closing of the Incremental Term Loans
to occur in approximately one week. About Charter Communications
Charter Communications, Inc. is a leading broadband communications
company and the third-largest publicly traded cable operator in the
United States. Charter provides a full range of advanced broadband
services, including advanced Charter Digital� video entertainment
programming, Charter High-Speed� Internet access service, and
Charter Telephone� services. Charter Business� similarly provides
scalable, tailored and cost-effective broadband communications
solutions to business organizations, such as business-to-business
Internet access, data networking, video and music entertainment
services and business telephone. Charter's advertising sales and
production services are sold under the Charter Media� brand. More
information about Charter can be found at www.charter.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS: This
release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, regarding,
among other things, our plans, strategies and prospects, both
business and financial. Although we believe that our plans,
intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, we cannot assure you
that we will achieve or realize these plans, intentions or
expectations. Forward-looking statements are inherently subject to
risks, uncertainties and assumptions including, without limitation,
the factors described under "Risk Factors" from time to time in our
filings with the Securities and Exchange Commission (�SEC�). Many
of the forward-looking statements contained in this release may be
identified by the use of forward-looking words such as "believe,"
"expect," "anticipate," "should," "planned," "will," "may,"
"intend," "estimated," "aim," "on track," "target," "opportunity"
and "potential," among others. Important factors that could cause
actual results to differ materially from the forward-looking
statements we make in this release are set forth in other reports
or documents that we file from time to time with the SEC, and
include, but are not limited to: the availability, in general, of
funds to meet interest payment obligations under our debt and to
fund our operations and necessary capital expenditures, either
through cash flows from operating activities, further borrowings or
other sources and, in particular, our ability to fund debt
obligations (by dividend, investment or otherwise) to the
applicable obligor of such debt; our ability to comply with all
covenants in our indentures and credit facilities, any violation of
which, if not cured in a timely manner, could trigger a default of
our other obligations under cross-default provisions; our ability
to pay or refinance debt prior to or when it becomes due and/or
refinance that debt through new issuances, exchange offers or
otherwise, including restructuring our balance sheet and leverage
position; the impact of competition from other distributors,
including incumbent telephone companies, direct broadcast satellite
operators, wireless broadband providers, and digital subscriber
line (�DSL�) providers; difficulties in growing, further
introducing, and operating our telephone services, while adequately
meeting customer expectations for the reliability of voice
services; our ability to adequately meet demand for installations
and customer service; our ability to sustain and grow revenues and
cash flows from operating activities by offering video, high-speed
Internet, telephone and other services, and to maintain and grow
our customer base, particularly in the face of increasingly
aggressive competition; our ability to obtain programming at
reasonable prices or to adequately raise prices to offset the
effects of higher programming costs; general business conditions,
economic uncertainty or slowdown, including the recent significant
slowdown in the new housing sector and overall economy; and the
effects of governmental regulation on our business. All
forward-looking statements attributable to us or any person acting
on our behalf are expressly qualified in their entirety by this
cautionary statement. We are under no duty or obligation to update
any of the forward-looking statements after the date of this
release.
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