Chemical Banking Corp. and its Texas Commerce Bank unit are leading the syndication of a $2.5 billion loan to Cox Enterprises for its acquisition of the coveted Times Mirror Co. cable operations.
Cox communication, a subsidiary of Cox Enterprises, made the purchase with $930 million of common stock, plus the assumption of $1.4 billion of Times Mirror debt.
The combination of the approximately 1.8 million Cox subscribers and the 1.3 million Times Mirror subscribers will make Cox the fourth-largest American cable company.
The merger is the 11th large bank-funded acquisition in the heavily regulated cable arena this year, a record. Chemical held an invitation-only bank meeting for the investment-grade company Friday.
Some of the larger cable lenders, including Toronto Dominion Bank and the Canadian Imperial Bank of Commerce, were expected to attend.
The loan is divided into a $1.4 billion, 364-day facility and a $1.1 billion, five-year facility.
The price will range from 50 to 62.5 basis points over the London interbank offered rate. Market sources expect syndication on this loan to close in the early part of January.
