Charter Communications moved a step closer to completing its purchase of Time Warner Cable and Bright House Networks, announcing it will issue debt in a six-part deal aimed at partially financing the transactions.
According to Charter, its subsidiary CCO Safari LLC will issue senior notes due in 2020, 2022, 2025, 2035, 2045 and 2055. Charter said in a statement that proceeds from the offering will be placed in escrow at CCP Safari II LLC until the closing of the TWC transaction, at which time the notes will be assumed by other Charter subsidiaries – Charter Communications Operating LLC and Charter Communications Operating Capital Corp.
Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and UBS Securities LLC will act as the joint book-running managers for the offering.
Charter said in May that it had agreed to purchase Time Warner Cable in a deal valued at $78.7 billion and in a separate transaction would acquire Bright House for $10.4 billion.
According to reports, the six-part bond deal could be worth between $12 billion and $15 billion when it prices later in the day. The offering is part of an overall $31 billion M&A funding package that will also include high-yield bonds and bank debt.
The deals still need to receive regulatory approval before they can officially close. On July 8, the Federal Communications Commission picked the team that will vet the merger for the agency.
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.