Cox Communications Inc. has closed a new $1.1 billion, 364-day revolving
bank-credit facility, which replaced an existing maturing facility, officials
This credit facility -- in conjunction with an existing $900 million facility
maturing in 2005 -- allows the company to maintain its strong liquidity
Cox said its new $1.1 billion, 364-day revolving-credit facility, which
includes a two-year term-out option, was arranged through a syndicate of 23
financial institutions that provided $1.4 billion in commitments.
The agents for the credit facility are J.P. Morgan Chase & Co., Bank of
America and Wachovia Corp.
The credit facility contains a maximum leverage covenant of five times and
minimum interest coverage of two times. There are no ongoing representations
specifically relating to a material adverse change in Cox's financial
The facility contains a ratings-based pricing grid, but it has no
ratings-based defaults or covenants.
Both this 364-day credit facility and the 2005 facility are available to be
used for general corporate purposes.