Charter Communications, the St. Louis-based cable operator with around 6 million subscribers, said Monday it will launch a $6.8 billion refinancing plan.
The idea behind the refinancing is to extend the maturity of existing debt instruments and is part of the debt-laden company’s broader strategy to increase its liquidity.
Charter said it hired investment banks JP Morgan Securities, Banc of America Securities and Citigroup Global Markets to arrange a $300 million credit facility and a $5 billion loan due in 2013 and to amend an existing $1.5 billion credit facility. The company expects to complete the refinancing in a few weeks.
As of Dec. 31, Charter’s debt stood at more than $19 billion, the result of a series of cable system acquisitions in the 1990s that have left it with less financial capacity than its peers to aggressively roll out advanced products such as telephone service.
Charter Announces $6.8 Billion Refinancing Plan
Apr 3, 2006 • Post A Comment