8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Jan 15, 2002)

Filed January 15, 2002For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) has announced the issuance of significant new debt through its subsidiaries, Charter Communications Holdings, LLC and Charter Communications Holdings Capital Corporation. This transaction involves the sale of $350 million in 9.625% Senior Notes due 2009, $300 million in 10.000% Senior Notes due 2011, and $250 million in 12.125% Senior Discount Notes due 2012. The total principal amount issued is $900 million, with the discount notes having a future principal at maturity of $450 million. This move indicates the company's strategy to raise capital, likely for operational needs, expansion, or refinancing existing debt. Investors should note the specific coupon rates and maturity dates, which reflect current market conditions and the perceived risk associated with Charter Communications at the time.

Key Highlights

  • 1Charter Communications subsidiaries are issuing a total of $900 million in new senior notes.
  • 2The debt issuance includes three tranches with varying interest rates and maturity dates: 9.625% due 2009, 10.000% due 2011, and 12.125% due 2012.
  • 3The Senior Discount Notes due 2012 have a principal at maturity of $450 million, representing a significant portion of the total capital raised.
  • 4This debt issuance is a material event for Charter Communications, indicating significant capital raising activities.
  • 5The filing includes related agreements such as the Purchase Agreement, Indentures, and Exchange and Registration Rights Agreements, providing details on the terms of the debt.
  • 6The transaction involves a syndicate of prominent financial institutions as underwriters or agents, including Salomon Smith Barney, Banc of America Securities, and J.P. Morgan Securities.

Frequently Asked Questions

Charter Communications' subsidiaries are issuing a total of $900 million in principal amount of new senior notes. This comprises $350 million in 9.625% Senior Notes due 2009, $300 million in 10.000% Senior Notes due 2011, and $250 million in 12.125% Senior Discount Notes due 2012.

The filing does not explicitly state the purpose of the debt issuance. However, such significant capital raises are typically used for general corporate purposes, which could include funding operations, capital expenditures, acquisitions, refinancing existing debt, or other strategic initiatives.

The new debt consists of three series: 9.625% Senior Notes due 2009, 10.000% Senior Notes due 2011, and 12.125% Senior Discount Notes due 2012. The discount notes will have a principal value of $450 million at maturity. The filing includes purchase agreements, indentures, and registration rights agreements which contain the detailed terms and conditions.

A significant syndicate of financial institutions is involved in this offering, acting as underwriters or agents. Key participants mentioned include Salomon Smith Barney Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Fleet Securities, Inc., and others.