Charter to Extend Debt Terms

Lenders Will Drop Appeal of Reorg Plan

By Mike Farrell -- Multichannel News, 3/17/2010 4:37:03 PM

Charter Communications said Wednesday that it has received the necessary votes from lenders to amend its existing $8.17 billion in senior secured credit facilities, extending maturities on some debt and creating a new revolving credit facility.

The deal also appeases a group of lenders that had tried to block Charter's Chapter 11 reorganization plan last year. As part of the new deal, Bank of America and J.P. Morgan Chase Bank have agreed to dismiss the pending appeal of the company's order of confirmation before U.S. District Court of the Southern District of New York, and to waive any objections to the order of confirmation issued by the U.S. Bankruptcy Court for the Southern District of New York on Nov. 30.

As part of the deal, Charter will extend about $3 billion of existing term loan maturities to Sept. 2016, a two and one-half year extension from the current terms. Charter also will enter into a new revolving credit facility for $1.2 billion, which will mature in 2015 (a two year extension from the current revolver).

In a statement, Charter said it expects to close on the transaction by March 31.

Banc of America Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., GE Capital Markets, Inc., J.P. Morgan Securities Inc., and UBS Securities LLC are serving as joint lead arrangers and joint bookrunners, and US Bank National Association is serving as senior managing agent on the transaction.