Charter Sets Rate on Loan; CVC Hires Bank for Buyout Financing

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. CVC Capital Partners Ltd. hired Deutsche Bank AG to arrange debt financing for its buyout of German energy-metering business Ista International GmbH.

Charter’s 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, according to a person with knowledge of the deal, who asked not to be identified because the information is private. CVC agreed to buy a majority stake in Ista from Charterhouse Capital Partners LLP, the London-based private-equity company said.

The SPDR Blackstone/ GSO Senior Loan exchange-traded fund, which began trading on April 4, has more than doubled its total shares outstanding since then, increasing its market capitalization to $140.4 million, according to data compiled by Bloomberg.

Nuveen Investments Inc., the money manager controlled by Madison Dearborn Partners LLC, set the rate it will pay on $3.06 billion of loans, according to two people with knowledge of the matter.

A $2.56 billion first-lien piece due in May 2017 will pay interest at 3.75 percentage points more than Libor, with no minimum on the lending benchmark, said the people, who asked not to be identified because the deal is private.

The price of loans was unchanged at 98.45 cents on the dollar this week, about the highest level since July 2007, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 Index.

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