Tuesday, January 14, 2014

REFILE-Charter touts benefits of Time Warner Cable deal

REFILE-Charter touts benefits of Time Warner Cable deal
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Tue Jan 14, 2014 1:57pm EST



By Liana B. Baker


Jan 14 (Reuters) – Charter Communications sees annual synergies of $ 500 million and other benefits such as tax savings from its proposed acquisition of Time Warner Cable , the company said in an investor presentation posted on its website Tuesday.


The company said annual synergies would grow to $ 750 million over time. Charter said the combined company would have to take on $ 20.5 billion in new debt, or $ 72.16 per share, which would bring it to a leverage ratio of 4.8 times to five times.


Charter also said in its 30-page presentation that Charter would be able to accelerate Time Warner Cable’s customer and cash-flow growth, increase its margins and roll out higher Internet speeds.


On Monday, Charter, the No. 4 cable operator, proposed paying $ 132.50 per share, consisting of around $ 83 per share in cash and its own stock, in a deal valued at $ 37.3 billion.


Time Warner Cable shares on Tuesday rose 3.1 percent to $ 136.48.



Reuters: Bonds News




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