Banks Commit $10 Bln Financing For Cox Buyout

Citigroup Global Markets and Lehman Brothers have committed $10 billion in unsecured credit facilities to back Cox Enterprises' $7.9 billion proposed acquisition of the 38% publicly-held portion of Cox Communications.

  • 06 Aug 2004
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Citigroup Global Markets and Lehman Brothers have committed $10 billion in unsecured credit facilities to back Cox Enterprises' $7.9 billion proposed acquisition of the 38% publicly-held portion of Cox Communications. Citi and Lehman officials and Richard Jacobson, v.p. and treasurer of Cox Enterprises, did not return calls.

Cox Enterprises currently has a 62% interest in Cox Communications. Citi and Lehman will each provide 50% of the financing and will be credited as the exclusive joint bookrunners, according to the commitment letter filed with the Securities and Exchange Commission. Latham & Watkins will be counsel for the banks.

The new facilities will also replace Cox Enterprise's existing $1.1 billion revolver and Cox Communications' $1.25 billion revolver. The $1.1 billion line is led by J.P. Morgan and Wachovia Securities with Citigroup, SunTrust Bank, The Royal Bank of Scotland and Banc of America Securities playing a role. The $1.25 billion revolver is led by Citigroup, SunTrust, B of A, Wachovia and J.P. Morgan.

Standard & Poor's has placed Cox Enterprises' BBB corporate credit rating on watch. If the transaction goes through as planned the senior unsecured debt would be downgraded to BBB- or BB+, the agency adds, with leverage increasing from three to five times.

  • 06 Aug 2004

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 6,665 23 12.97
2 Citi 5,781 17 11.25
3 BNP Paribas 3,715 15 7.23
4 Barclays 2,853 9 5.55
5 Credit Suisse 2,783 8 5.42

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 99,250.27 279 13.13%
2 Bank of America Merrill Lynch 91,648.43 266 12.13%
3 Wells Fargo Securities 72,661.39 222 9.61%
4 JPMorgan 52,367.24 169 6.93%
5 Credit Suisse 41,885.89 127 5.54%