Charter Communications Inc is the fourth biggest cable operator in the US. The company amended a credit agreement to make the cable firm more flexibility for acquisitions. The modification on the said agreement affected about US$4.8 billion of loans. This would allow the company to assume more debt for deals as stated in its filing before the US SEC today.
Charter Communications is based Connecticut and is the most indebted junk-rated US cable company. It has a total of US$12.8 billion of loans according to a data compiled by Bloomberg.
According to a source familiar with the matter, Charter is looking at other alternatives. This included acquisition for the second largest US cable company, Time Warner Cable Inc. Liberty Media Corp owns a 27% stake in Charter and was said to provide funding to acquire Time Warner. Another option was to structure a deal by borrowing against Time Warner's assets said by same source.
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