Charter Rises on Refinancing

It plans to replace $6.85 billion worth of credit lines with $8 billion worth.
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Charter Communications (CHTR) - Get Report rose 5% Friday after the debt-laden cable TV system operator set plans for a big refinancing.

The St. Louis-based company said it wants to replace $6.85 billion in senior secured credit facilities with $8 billion in similar lines, including a $1.5 billion revolver, a $1 billion term facility, a $5 billion term refinancer and a $550 million second lien term loan.

Charter expects to use a portion of the additional proceeds to redeem up to $550 million floating rate notes due 2010 and up to $187 million 8.625% senior notes due 2009. Charter said it will benefit from extended debt maturities and improved liquidity. Charter expects that, subject to market conditions, the transaction would be completed within the next few weeks.

The company also guided to revenue of $1.41 billion for the fourth quarter, matching the Thomson Financial analyst consensus estimate.

Shares rose 16 cents to $3.41.