Market Overview

Charter Adds Goldman Sachs to Finance $25B in Debt For Time Warner Bid

Charter Adds Goldman Sachs to Finance $25B in Debt For Time Warner Bid
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Charter Communications (NASDAQ: CHTR) continues to pursue an acquisition of Time Warner Cable (NYSE: TWC) adding Goldman Sachs (NYSE: GS) and Credit Suisse (NYSE: CS) to a group of banks prepared to lend $25 billion.

Charter's bid, backed by John Malone's Liberty Media (NASDAQ: LMCA), includes close to $90 per share in cash and the rest in Charter stock, according to the Wall Street Journal. Bloomberg reported that Liberty will contribute equity to maintain its 27 percent stake in the new company.

Charter met with lenders to set financing terms last week. The company is planning to offer under $135 per Time Warner share or a value of $62 billion including debt. Time Warner Cable is looking for a deal of at least $150 a share.

Related: Summary of Finish Line's 3Q14 Earnings Teleconference Call

On Monday, Reuters reported that Comcast is looking at a few options for a Time Warner Deal. Comcast is looking at a full takeover, purchasing select Time Warner Cable Market, or a bid with another company other than Charter. According to WSJ, Time Warner is more likely to make a deal with Comcast or Cox Communications as Charter's bid is financially risk with their debt lad.

Shares of Charter closed at $131.36 on Monday and are currently trading down 0.86 percent. Time Warner Cable closed at $132.09 and is up 0.77 percent.

Posted-In: News Wall Street Journal Rumors Financing Offerings Media

 

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