Charter Communications Inc., the fourth-largest U.S. cable operator, set the rate it will pay on a $1.2 billion loan to repay debt, according to a person with knowledge of the transaction.
The term F portion will come due in January 2021 and pay interest at 2.25 percentage points more than the London interbank offered rate, with a 0.75 percent minimum on the lending benchmark, said the person, who asked not to be identified because the information is private. Charter is offering the loan to investors at 99.75 cents on the dollar.
Credit Suisse Group AG is arranging the financing for the Stamford, Connecticut-based company and is hosting a lender call today at 10 a.m. in New York, the person said. Lenders must let the bank know by April 25 whether they will participate in the deal.
Charter, through its CCO Holdings LLC and CCO Holdings Capital Corp. units, also is planning to sell $1 billion in senior unsecured notes due in 2024, the company said today in a statement distributed by PR Newswire.
Proceeds from the sale will be used for general corporate purposes and to fund a tender offer for CCO Holdings’ $900 million of 7.875 percent senior unsecured notes due April 2018, the company said. Those securities traded at 106.75 cents on the dollar to yield 6.29 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Proceeds of the term loan F will help refinance $527 million of term C debt due in 2016 and $744 million of a term D slice due in 2019, the company said in the statement.