8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Jun 12, 2003)

Filed June 12, 2003For Securities:CHTR

Summary

This 8-K filing from Charter Communications, Inc. (CHTR) on June 12, 2003, primarily reports the consummation of a significant transaction related to the "Comcast Put Right." This right, granted to sellers affiliated with AT&T Broadband (now Comcast Corporation), allowed them to sell their Class A Preferred Membership Interests in CC VIII, LLC (or equivalent common stock) to Mr. Allen for approximately $630 million plus 4.5% annual interest from February 2000. The Comcast Sellers exercised this put right in April 2002, and the transaction was officially completed on June 6, 2003. This event represents a substantial outflow of capital for Mr. Allen and potentially for Charter Communications itself, depending on the ultimate financing and operational impact of this $630 million-plus obligation.

Key Highlights

  • 1Consummation of the "Comcast Put Right" transaction on June 6, 2003.
  • 2The transaction involves the sale of CC VIII, LLC Class A Preferred Membership Interests to Mr. Allen.
  • 3The sale price was approximately $630 million, plus 4.5% annual interest accrued since February 2000.
  • 4The Comcast Sellers, affiliated with AT&T Broadband (now Comcast Corporation), exercised their put right in April 2002.
  • 5This filing is an update to previously disclosed information regarding this significant financial obligation.
  • 6Investors should refer to the Form 10-K filed on April 15, 2003, for additional details on this matter.

Frequently Asked Questions

The "Comcast Put Right" was an agreement where sellers affiliated with AT&T Broadband (now Comcast Corporation) had the option to sell their Class A Preferred Membership Interests in CC VIII, LLC (or equivalent Charter stock) back to Mr. Allen for a predetermined amount plus interest.

The Comcast Sellers exercised their put right in April 2002, and the sale was consummated on June 6, 2003.

The transaction involved the sale of the interests for approximately $630 million, plus 4.5% annual interest accrued from February 2000, representing a significant financial obligation.

Additional details regarding this matter and related issues are available in Charter Communications' Annual Report on Form 10-K, which was filed on April 15, 2003.