8-KMaterial AgreementsFinancial EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Material Agreement (Dec 7, 2004)

Filed December 7, 2004For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on December 7, 2004, a significant financing transaction through its indirect subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. These subsidiaries entered into a purchase agreement to issue and sell $550 million in principal amount of Senior Floating Rate Notes due 2010. This offering, conducted privately under Rule 144A, involves a six-year term with a two-year non-call provision and will bear interest at a floating rate of LIBOR plus 4.125%, reset and payable quarterly. The net proceeds from this debt issuance are intended to be used for debt paydown and general corporate purposes. The transaction is expected to close around December 15, 2004, subject to customary closing conditions. Investors should note that this is a debt issuance by a subsidiary, and the terms are similar to existing senior notes, indicating a strategy to manage the company's leverage and liquidity.

Key Highlights

  • 1Charter Communications' subsidiaries are issuing $550 million in Senior Floating Rate Notes due 2010.
  • 2The notes will have a six-year maturity and a two-year non-call period.
  • 3The interest rate is variable, set at LIBOR plus a spread of 4.125%, payable quarterly.
  • 4The offering is a private placement under Rule 144A.
  • 5Proceeds are earmarked for debt reduction and general corporate uses.
  • 6The expected closing date for the offering is December 15, 2004.
  • 7The transaction involves CCO Holdings, LLC and CCO Holdings Capital Corp. as Issuers.

Frequently Asked Questions

The primary purpose of the $550 million Senior Floating Rate Notes issuance is to pay down existing debt and for general corporate purposes. This indicates a focus on deleveraging and maintaining financial flexibility for Charter Communications.

The Senior Floating Rate Notes due 2010 will bear interest at an annual rate equal to The London Interbank Offer Rate (LIBOR) plus a spread of 4.125%. The interest rate will be reset and payable on a quarterly basis.

The offering is anticipated to be completed on or about December 15, 2004, provided that all closing conditions are satisfied.

The filing specifies that the notes are being sold in a private transaction under Rule 144A. This means they are typically offered to qualified institutional buyers and are not initially registered with the SEC for public sale.