Cablevision Gets Credit Lines

The company retires some debt.
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Updated from 5:21 p.m. EST

Cablevision

(CVC)

got $2.4 billion of secured credit facilities.

The Bethpage, N.Y., cable TV system operator said the line consists of a $1 billion revolving credit facility and $1.4 billion of term loans.

The company said its CSC Holdings arm has used $1.3 billion of the proceeds from the new credit facilities to repay the amounts outstanding under its current $2.4 billion revolving credit facility and accrued interest and fees, and intends to use the remainder of the proceeds for general corporate purposes.

The existing facility was scheduled to expire in June 2006. The terms of the new credit facilities allow the company to access up to $3.1 billion of additional funds from an uncommitted incremental credit facility.

Cablevision said in December that it had to cancel a planned $3 billion dividend and a $1 billion financing deal after finding it had breached covenants of an earlier credit line. With their 20% stake in the company, Cablevision's founding Dolan family would have pocketed about $600 million in the dividend payout.

Cablevision executives attributed the violation to a "technical" error and said it wasn't related to "any underlying financial weakness."

In late January, the company said it was in compliance with all of its debt agreements, and noted that its board is expected to reconsider a special dividend at its regularly scheduled meeting in March.