8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Sep 26, 2003)

Filed September 26, 2003For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on September 23, 2003, the closing of a significant debt exchange transaction. The company, through its indirect subsidiary CCH II, LLC, repurchased approximately $609 million of its convertible senior notes and $1.3 billion of senior and senior discount notes issued by Charter Communications Holdings, LLC. In exchange, CCH II issued new 10.25% notes due 2010, totaling $1.6 billion in principal amount. This strategic move appears aimed at restructuring and managing its debt obligations. The company also sold an additional $30 million of these new notes for cash, which will be used for transaction costs and general corporate purposes. Investors should note that these new notes are not registered under the Securities Act of 1933 and are subject to restrictions on transfer, indicating a private placement nature.

Key Highlights

  • 1Charter Communications completed a significant debt exchange on September 23, 2003.
  • 2The company repurchased $609 million of its convertible senior notes.
  • 3Charter Communications Holdings, LLC's senior and senior discount notes totaling $1.3 billion were also repurchased.
  • 4A new series of 10.25% notes due 2010, with an aggregate principal amount of $1.6 billion, were issued by CCH II, LLC.
  • 5An additional $30 million of these new notes were sold for cash to cover transaction costs and for general corporate purposes.
  • 6The new notes were issued in a private transaction and are not registered under the Securities Act of 1933, limiting their resale in the U.S.

Frequently Asked Questions

The primary purpose of the debt exchange was to restructure and manage Charter Communications' existing debt obligations by repurchasing older notes and issuing new notes with specific terms. This involved exchanging approximately $1.9 billion in principal amount of outstanding notes for $1.6 billion in new notes.

Charter Communications exchanged approximately $609 million of its convertible senior notes and $1.3 billion of senior notes and senior discount notes issued by its subsidiary Charter Communications Holdings, LLC. In return, its indirect subsidiary, CCH II, LLC, issued $1.6 billion principal amount of new 10.25% notes due 2010.

No, the newly issued 10.25% notes are not registered under the Securities Act of 1933. This means they cannot be freely offered or sold in the United States unless they are registered or qualify for an exemption from registration. This suggests they were issued in a private placement.

The proceeds from the additional $30 million of 10.25% notes sold for cash will be applied to cover transaction costs associated with the exchange and for general corporate purposes of the company.