8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Apr 21, 2004)

Filed April 21, 2004For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on April 20, 2004, a significant debt financing transaction through its subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp. The company intends to sell $1.1 billion of 8% Senior Second Lien Notes due 2012 and $400 million of 8-3/8% Senior Second Lien Notes due 2014, aiming for total gross proceeds of approximately $1.5 billion. This debt issuance represents a strategic move to raise substantial capital, likely for general corporate purposes, debt refinancing, or strategic initiatives. Investors should note the specific terms of the notes, including their coupon rates and maturity dates, as these will impact the company's future interest expenses and financial obligations. The transaction is being conducted as a private placement. Investors should also be aware of the "Cautionary Statement Regarding Forward-Looking Statements" included in the filing, which highlights potential risks and uncertainties that could affect the company's ability to achieve its stated plans.

Key Highlights

  • 1Charter Communications' subsidiaries are issuing $1.1 billion of 8% Senior Second Lien Notes due 2012.
  • 2Charter Communications' subsidiaries are also issuing $400 million of 8-3/8% Senior Second Lien Notes due 2014.
  • 3The combined debt issuance is expected to generate total gross proceeds of approximately $1.5 billion.
  • 4The notes are Senior Second Lien Notes, indicating their priority in the capital structure behind first lien debt.
  • 5The offering is being conducted as a private transaction.
  • 6The filing includes a cautionary statement about forward-looking statements and associated risks.

Frequently Asked Questions

The filing states the proceeds are for estimated total gross proceeds of $1.5 billion. While the specific use of proceeds is not detailed in this 8-K, such substantial capital raises are typically intended for general corporate purposes, refinancing existing debt, funding capital expenditures, or pursuing strategic acquisitions.

Charter Communications is issuing two tranches of Senior Second Lien Notes: $1.1 billion with an 8% coupon due in 2012, and $400 million with an 8-3/8% coupon due in 2014.

Being 'Senior Second Lien' means these notes are secured debt, but they rank behind any 'First Lien' debt in terms of claims on collateral in the event of bankruptcy or liquidation. This typically implies a higher risk profile compared to first lien debt, and therefore, potentially a higher interest rate.

No, the filing states that the notes are being sold in a 'private transaction,' which generally means they are not being offered to the general public but rather to a select group of institutional investors.