Charter Communications Extends Maturities of Credit Facilities to Strengthen Financial Position

Charter Communications Strengthens Financial Position

Charter Communications, Inc. (NASDAQ: CHTR) has recently taken a significant step to reinforce its financial foundation by amending its existing Credit Agreement. The amendment, which took place on December 3, 2024, allows Charter’s subsidiary, Charter Communications Operating, LLC (CCO), to extend the maturity dates on a substantial part of its debts, moving them from 2027 to later dates in 2030 and 2031. This strategic decision is aimed at providing the company greater financial flexibility and stability in an evolving market.

Details of the Amendment

With the new amendment, CCO has achieved several key milestones:

1. Increased Revolving Credit Facility: The total principal amount of CCO's revolving credit facility has been raised by $960 million, now priced at SOFR plus 1.25%. This includes:
- Existing Revolving B Commitments: $960 million maturing on August 31, 2027.
- New Revolving C Commitments: A substantial new allocation of $5.5 billion, maturing on March 15, 2030.

2. Conversion of Term Loans: CCO has converted parts of its existing Term A-5 Loans into new Term A-7 Loans. The total principal of Term A-7 Loans now stands at approximately $4.5 billion, with a maturity also set for March 15, 2030, and priced at SOFR plus 1.25%. Additionally, parts of the existing Term B-2 Loans were converted into new Term B-5 Loans, totaling $2.5 billion, maturing on December 15, 2031, priced at SOFR plus 2.25%.

3. Repayments and Application of Proceeds: The proceeds from this amendment, along with cash reserves, were utilized to fully repay the remaining unrealized parts of Term A-5 Loans and Term B-2 Loans that were not converted.

These strategies reflect Charter’s intent to reduce financial risk by extending maturities and improving cash flow management, which are critical amid increasing market demands and competition.

About Charter Communications

Charter Communications is a prominent player in the broadband connectivity sector and a leading cable operator, serving over 58 million homes and businesses across 41 states under its Spectrum brand. The company boasts a diversified portfolio of services that includes not just high-speed internet but also TV, mobile, and voice solutions for residential customers.

Furthermore, Charter's platform provides tailored solutions for small to medium-sized enterprises through its Spectrum Business offerings, while larger clients and governmental organizations can access customized solutions via Spectrum Enterprise. Charter also focuses on digital advertising through Spectrum Reach, catering to the evolving needs of advertisers in the current landscape.

The unwavering commitment to delivering robust communications infrastructure has positioned Charter as a key player in the market, which is vital for navigating the complexities of the telecommunications industry.

For anyone seeking more information about Charter Communications and its services, further details can be found at their corporate website: Charter Communications.