Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Event

On February 27, 2019, we entered into an agreement to sell our operations in Switzerland, “UPC Switzerland,” to Sunrise Communications Group AG (“Sunrise”) for a total enterprise value of CHF 6.3 billion ($6.3 billion at the February 27, 2019 rate). Sunrise will acquire UPC Switzerland inclusive of the UPC Holding borrowing group’s existing senior and senior secured notes and associated derivatives (together, the “UPC Holding Notes”) and certain other debt items, which have an aggregate value equal to approximately CHF 3.7 billion ($3.7 billion at the February 27, 2019 rate) at December 31, 2018. The net cash proceeds are expected to be CHF 2.6 billion ($2.6 billion at the February 27, 2019 rate), subject to customary other liabilities and working capital adjustments at completion, and are expected to be used for general corporate purposes.

As the transaction is structured, a change of control will not be triggered under the UPC Holding Notes. UPC Facility AR under the UPC Holding Bank Facility, which had an outstanding balance at December 31, 2018 of $1,645.0 million, is expected to be repaid in full at or prior to closing.

Closing of the transaction is subject to regulatory approval, which is expected prior to year-end 2019, and approval by Sunrise’s shareholders with respect to an associated capital increase.

In connection with the sale of UPC Switzerland, we have agreed to provide certain transitional services to Sunrise for a period of up to five years following completion. Such transitional services principally comprise network and information technology-related functions. The annual charges for such transitional services will depend on the actual level of transitional services required by Sunrise.