8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Nov 17, 2004)

Filed November 17, 2004For Securities:CHTR

Summary

Charter Communications, Inc. announced on November 17, 2004, its agreement to issue and sell $750 million in original principal amount of Convertible Senior Notes due 2009 in a private transaction. This issuance aims to bolster the company's capital structure and provide flexibility. The notes carry a 5.875% annual interest rate, payable semi-annually, and are convertible into Class A common stock at an initial conversion price of approximately $2.42 per share. An additional option for the initial purchasers to acquire up to $112.5 million in principal amount for over-allotments was also granted. This private placement represents a significant financing event for Charter, providing capital while offering convertible debt features that could be attractive to certain investors. The conversion price suggests the company anticipates potential growth in its common stock value.

Key Highlights

  • 1Charter Communications to issue $750 million in Convertible Senior Notes due 2009.
  • 2Private transaction to raise capital for the company.
  • 3Notes will carry an annual interest rate of 5.875%, paid semi-annually.
  • 4Conversion feature allows notes to be exchanged for Class A common stock.
  • 5Initial conversion price set at approximately $2.42 per share.
  • 6Option granted for over-allotment of up to $112.5 million in notes.

Frequently Asked Questions

The primary purpose of issuing these convertible senior notes is to raise capital for Charter Communications. The funds generated will strengthen the company's financial position and provide flexibility for its operations and strategic initiatives.

The notes have an original principal amount of $750 million, mature in 2009, and carry an annual interest rate of 5.875%, payable semi-annually. They are convertible into Charter's Class A common stock at an initial conversion price of approximately $2.42 per share.

The conversion feature allows holders of the notes to convert them into a fixed number of shares (413.2231 shares per $1,000 note) of Charter's Class A common stock. This provides investors with the potential to benefit from any increase in the company's stock price, in addition to receiving interest payments.

A private transaction means the notes are being sold directly to a select group of institutional investors or accredited purchasers, rather than being offered to the general public through a registered public offering. This typically involves fewer regulatory requirements and can be a faster way to raise capital.