Charter Communications launches $3.5 billion term loan H to investors

By Sara Rosenberg

New York, July 20 – Charter Communications Inc. held a conference call at 11:30 a.m. ET on Monday to launch a $3.5 billion seven-year term loan H, according to a market source.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS AG and Deutsche Bank Securities Inc. are the lead banks on the financing.

Price talk on the term loan H is Libor plus 275 basis points to 300 bps with a 0.75% Libor floor and an original issue discount of 99.5, the source said.

The loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the acquisitions of Time Warner Cable Inc. and Bright House Networks.

Time Warner Cable is being purchased in a cash and stock deal valued at $78.7 billion, and Bright House Networks is being bought from Advance/Newhouse Partnership for $10.4 billion.

Charter and Advance/Newhouse will form a new partnership under which New Charter will own between about 86% and 87% and Advance/Newhouse will own between about 13% and 14%, depending on Time Warner Cable shareholders’ cash election option.

Closing on the Time Warner and Bright House acquisitions are expected to occur at the same time by the end of this year, subject to approval by both Charter and Time Warner Cable shareholders, regulatory review and other customary conditions.

The combination of Stamford, Conn.-based Charter with Time Warner Cable and Bright House will create a broadband services and technology company with 23.9 million customers in 41 states.

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