Charter sets incremental term loan size at $500 million

By Sara Rosenberg

New York, March 12 - Charter Communications Operating LLC firmed up the size of its incremental term loan (B1/B+) at $500 million, according to a news release.

The loan was launched on Tuesday morning with a size of $275 million, but by late day it was disclosed that the deal would be increased to $400 million to $500 million, as a result of strong demand.

As was previously reported, pricing on the loan is Libor plus 500 basis points, with a 3.5% Libor floor, and an original issue discount of 96.

JPMorgan and Citigroup are the lead banks on the deal, with JPMorgan the left lead.

Net proceeds of $471 million from the term loan due March 6, 2014 will be used to repay revolver borrowings and for general corporate purposes.

Amortization is a quarterly principal installments totaling 1% annually, beginning on June 30.

Closing is expected to occur in about one week.

Charter is a St. Louis-based broadband communications company and cable operator.

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