Term loan boosted to over $16 billion
AT&T (T) moved to modify its loan agreement to fund the purchase of Time Warner before the start of the government’s antitrust trial against its proposal to acquire Time Warner (TWX). In the modification, AT&T’s term loan toward the purchase of Time Warner rose about 62% to $16.2 billion, according to MarketWatch. The original term loan agreement for $10 billion was reached in November 2016.
Termination dates extended
AT&T is obtaining the term loan from a syndicate of lenders led by JPMorgan Chase (JPM). The modified credit agreement extended the termination date of AT&T’s term loan to December 31, 2018.
In December, AT&T and Time Warner also moved to extend the termination date of their merger agreement for the second time. This move came after it became apparent that the court decision on the government’s antitrust challenge to the merger deal would come outside the termination date they had previously set.
YouTube expected to testify in the antitrust case
The US Justice Department filed a lawsuit to block AT&T from acquiring Time Warner for $85.4 billion in November 2017. The government’s argument is that combining AT&T and Time Warner would destroy competition, thus hurting consumers and competitors such as Comcast (CMCSA) and Dish Network (DISH).
Representatives of Comcast, Cox Communications, and Alphabet’s (GOOGL) YouTube are expected to testify in the antitrust case. AT&T’s revenue dropped about 0.2% year-over-year at to $41.7 billion in 4Q17.