Charter Communications is back in the market to refinance and expand its existing credit facility. The new $8.05 billion senior secured credit facility is led by JPMorgan, Banc of America Securities and Citigroup. The credit will refinance a $1.5 billion revolver and $5 billion term loan and add a new $1 billion term loan and $550 million second-lien term loan. Pricing could not be determined.
The debt will also be used to redeem $550 million of floating rate notes due 2010 and about $187 million of 8.625% senior notes due 2009 from the company's subsidiaries.
The St. Louis-based broadband communications company met a hungry market when it entered into the existing $5 billion deal last year (CIN, 4/7). The credit refinanced a $3 billion "B" loan and a $2 billion "A" loan into a cheaper $5 billion "C" loan and added a new $300 million revolver. At the time, investors grumbled that a triple C-credit was being cut from 300 and 325 basis points down to a projected LIBOR plus 2 3/4%. The loan is currently priced at LIBOR plus 262.5 basis points. Calls to Jeffrey Fisher, cfo, were not returned.