8-KOther Events

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report (Apr 27, 2004)

Filed April 27, 2004For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on April 27, 2004, to report on a significant financing transaction. The company's indirect subsidiaries, Charter Communications Operating, LLC and Charter Communications Operating Capital Corp., successfully closed on the issuance of $1.1 billion in 8% Senior Second Lien Notes due 2012 and $400 million in 8-3/8% Senior Second Lien Notes due 2014. This combined offering raised an estimated $1.5 billion in gross proceeds through a private transaction. The primary purpose of this substantial debt issuance was to refinance existing indebtedness within specific subsidiaries, namely CC VI Operating Company, LLC, Falcon Cable Communications, LLC, and CC VIII Operating, LLC. The net proceeds, along with increased borrowings under amended credit facilities, were utilized for this refinancing, indicating a strategic move to restructure the company's debt obligations and potentially improve its capital structure. Investors should note the significant scale of this debt issuance and its focus on refinancing existing liabilities.

Key Highlights

  • 1Charter Communications successfully closed a private placement of $1.5 billion in Senior Second Lien Notes.
  • 2The issuance includes $1.1 billion of 8% Senior Second Lien Notes due 2012.
  • 3An additional $400 million of 8-3/8% Senior Second Lien Notes due 2014 were also issued.
  • 4The net proceeds will be used to refinance indebtedness of subsidiaries CC VI Operating Company, LLC, Falcon Cable Communications, LLC, and CC VIII Operating, LLC.
  • 5The refinancing utilized net proceeds from the notes issuance and increased borrowings under amended credit facilities.
  • 6The filing is made under Regulation FD disclosure, furnishing a press release dated April 27, 2004.

Frequently Asked Questions

The primary purpose of the $1.5 billion debt issuance was to refinance existing indebtedness under the credit facilities of three specific subsidiaries: CC VI Operating Company, LLC, Falcon Cable Communications, LLC, and CC VIII Operating, LLC. This indicates a strategic move to restructure and potentially optimize the company's debt obligations.

Charter Communications issued $1.1 billion of 8% Senior Second Lien Notes due 2012 and $400 million of 8-3/8% Senior Second Lien Notes due 2014. These were issued in a private transaction.

Besides the net proceeds from the sale of the new Senior Second Lien Notes, Charter Communications also utilized increased borrowings under its amended and restated Charter Operating credit facilities to complete the refinancing of the specified subsidiaries' indebtedness.

While this specific filing details a debt refinancing transaction, it is part of the company's ongoing financial management and capital structure strategy. The use of forward-looking statements in the filing suggests management is focused on future plans and prospects, which this refinancing aims to support.