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) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 1,505.59 4 20.86%
2 SG Corporate & Investment Banking 1,292.64 1 17.91%
2 Rabobank 1,292.64 1 17.91%
4 Wells Fargo Securities 760.56 2 10.54%
5 BNP Paribas 598.25 2 8.29%