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Charter touts benefits of Time Warner Cable deal

A cable truck returns to a Time Warner Cable office in San Diego, California December 11, 2013. REUTERS/Mike Blake
A cable truck returns to a Time Warner Cable office in San Diego, California December 11, 2013. REUTERS/Mike Blake

By Liana B. Baker

(Reuters) - Charter Communications sees annual synergies of $500 million and other benefits such as tax savings from its proposed acquisition of Time Warner Cable , the company said in an investor presentation posted on its website Tuesday.

The company said annual synergies would grow to $750 million over time. Charter said the combined company would have to take on $20.5 billion in new debt, or $72.16 per share, which would bring it to a leverage ratio of 4.8 times to five times.

Charter also said in its 30-age presentation that Charter would be able to accelerate Time Warner Cable's customer and cash-flow growth, increase its margins and roll out higher Internet speeds.

On Monday, Charter, the No. 4 cable operator, proposed paying $132.50 per share, consisting of around $83 per share in cash and its own stock, in a deal valued at $37.3 billion.

Time Warner Cable shares on Tuesday rose 3.1 percent to $136.48.

(Reporting by Liana B. Baker; Editing by Leslie Adler)

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