8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Dec 27, 2004)

Filed December 27, 2004For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) announced on December 27, 2004, the completion of a significant financial maneuver involving the redemption of its 5.75% Convertible Senior Notes due October 2005. This redemption, totaling approximately $588 million in principal, was executed at a premium of 101.15% of the principal amount, plus accrued interest, for a total cost to Charter of around $601.1 million. This action was funded by a portion of the proceeds generated from Charter's earlier sale on November 22, 2004, of approximately $862.5 million in principal amount of new Convertible Senior Notes due 2009. This strategic move suggests Charter is actively managing its debt obligations, potentially to reduce interest expenses or optimize its capital structure.

Key Highlights

  • 1Charter Communications redeemed approximately $588 million of its 5.75% Convertible Senior Notes due October 2005.
  • 2The redemption price was 101.15% of the principal amount, plus accrued interest.
  • 3The total cost of the redemption was approximately $601.1 million.
  • 4The redemption was funded by proceeds from the sale of new Convertible Senior Notes due 2009.
  • 5Charter sold approximately $862.5 million of Convertible Senior Notes due 2009 on November 22, 2004.
  • 6This event signals active debt management by the company.

Frequently Asked Questions

Charter redeemed these notes as part of its debt management strategy, likely to optimize its capital structure and potentially reduce future interest expenses by utilizing proceeds from the issuance of new, longer-term convertible debt.

The redemption was financed using a portion of the proceeds obtained from Charter's sale of approximately $862.5 million in principal amount of new Convertible Senior Notes due 2009, which occurred on November 22, 2004.

The total cost to Charter for redeeming the notes amounted to approximately $601.1 million, which includes the principal amount plus a premium and accrued interest.

This transaction indicates that Charter is proactively managing its debt, potentially deleveraging or refinancing at more favorable terms. Investors should monitor the company's overall debt levels and interest expense following this action.