Jul. 24 at 9:34 PM
$CHTR “Cox Enterprises will receive:
$4 billion in cash,
$6 billion notional amount of convertible preferred units in Charter’s partnership, 6.875% coupon, and are convertible into Charter partnership units
(Convertible into common of the partnership at a 35% conversion premium; 6.875% preferred dividend coupon of
$413 million per year)
Aprox. 33.6 million common units in Charter’s existing partnership, with an implied value of
$11.9 billion”
The combined entity will assume Cox’s approximately
$12 billion in outstanding debt. “
So:
4 (cash) +6 (preferred) + 12 (cox debt) + 4.14 (33,6 mln shares at 123.3$) = 26.14 bln
So we got this “deal” that costs 413 mln/ year only for preferred. Bring on top 16 bln with 7% interest, 1.12 bn/year.
126 bln up front, -1.53 bln/year in interest for 6.1 ebitda including synergies.
I need to dig more overe this on.
It made sense in 2025, clearly not making sense now….
