Charter Communications plans $1.5 billion bank debt for Bresnan purchase

By Sara Rosenberg

New York, Feb. 7 - Charter Communications Inc. has received a commitment for $1.5 billion of bank financing to help fund its acquisition of Bresnan Broadband Holdings LLC from Cablevision Systems Corp., according to a news release.

Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. are leading the debt.

Other funds for the transaction will come from cash on hand and revolving credit facility borrowings.

Under the agreement, Bresnan is being acquired for $1.625 billion in cash, representing a purchase price multiple of 8.9 times third-quarter 2012 annualized adjusted EBITDA.

At closing, leverage will be 5 times. The company said in the release that it continues to target 4 times to 4.5 times leverage over time.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approval.

Charter Communications is a St. Louis-based broadband communications company. Bresnan is a manager of cable operating systems in Colorado, Montana, Wyoming and Utah.

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