Charter Closes on $750 Million Term Loan D and Refinances Revolving Credit Facility

ST. LOUIS, April 11, 2012 /PRNewswire/ -- Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, the "Company" or "Charter") today announced that on April 11, 2012, its subsidiary, Charter Communications Operating, LLC, entered into a Term Loan D pursuant to the terms of its Amended and Restated Credit Agreement (the "Credit Agreement") providing for $750 million of term loans with a final maturity date of May 15, 2019. Pricing on the new term loans was set at LIBOR plus 300 basis points, and they were issued with 0.5% of original issue discount. The proceeds were used to refinance the Company's existing Term Loan B-1 and Term Loan B-2, both due 2014, with the remaining amount used to pay down a portion of its existing Term Loan C due 2016.

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The Company concurrently refinanced its existing $1.3 billion Extended Revolving Credit Facility due 2015, with a new $1.15 billion Revolving Credit Facility due April 11, 2017, at an interest rate of LIBOR plus 225 basis points. Additional amounts drawn under the new facility were used to pay transaction related fees and expenses. The Company also entered into an amendment and restatement of the Credit Agreement to reflect the foregoing transactions, as well as certain other modifications in substantially the form agreed to with the Term Loan A lenders in December 2011 as was disclosed at that time.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and UBS Securities LLC served as the Joint Lead Arrangers and Book Runners for the new facilities.

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 (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), 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," "tentative," "positioning" 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:

• our ability to sustain and grow revenues and free cash flow by offering video, Internet, telephone, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our markets and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures and the difficult economic conditions in the United States;
• the development and deployment of new products and technologies;
• the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite operators, wireless broadband and telephone providers, and digital subscriber line ("DSL") providers and competition from video provided over the Internet;
• general business conditions, economic uncertainty or downturn, high unemployment levels and the level of activity in the housing sector;
• our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents);
• the effects of governmental regulation on our business;
• the availability and access, in general, of funds to meet our debt obligations, prior to or when they become due, and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; and
• 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.

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.

 

 

SOURCE Charter Communications, Inc.