8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Aug 25, 2006)

Filed August 25, 2006For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on August 25, 2006, to report on the progress of its debt exchange offers. The company's indirect subsidiaries, CCH II, LLC and CCH I, LLC, are offering to exchange outstanding senior notes maturing in 2009-2010 and 2011-2012 (the 'Old Notes') for newly issued Senior Notes due 2013 and Senior Secured Notes due 2015 (the 'New Notes'). This filing indicates an active effort by Charter to manage its debt maturity profile and potentially reduce its overall borrowing costs. As of August 24, 2006, a significant portion of the 'Old Notes' had been tendered, with approximately $483.1 million in principal amount exchanged. This includes $183.1 million of the 2009-2010 notes and $300.0 million of the 2011-2012 notes. Based on these tenders, Charter plans to issue approximately $200.0 million of CCH II Notes and $212.0 million of CCH I Notes. The filing also details the substantial principal amounts of the 'Old Notes' that would remain outstanding, suggesting the exchange offer may not fully retire all legacy debt.

Key Highlights

  • 1Charter Communications is actively managing its debt through exchange offers for its subsidiaries CCH II and CCH I.
  • 2The offers involve exchanging older notes (maturing 2009-2012) for new notes with later maturities (2013 and 2015) and specified interest rates (10.25% and 11.00%).
  • 3As of August 24, 2006, approximately $483.1 million aggregate principal amount of 'Old Notes' were validly tendered.
  • 4This tender amount comprises $183.1 million of notes maturing in 2009-2010 and $300.0 million of notes maturing in 2011-2012.
  • 5The company expects to issue approximately $200.0 million of CCH II Notes and $212.0 million of CCH I Notes based on tendered amounts.
  • 6A substantial amount of the 'Old Notes' will remain outstanding, indicating the exchange is a partial debt restructuring rather than a full retirement.

Frequently Asked Questions

The main purpose of these debt exchange offers is for Charter Communications' indirect subsidiaries, CCH II and CCH I, to retire existing debt (the 'Old Notes' with maturities in 2009-2012) and issue new debt (the 'New Notes' with maturities in 2013 and 2015). This is a common strategy to manage debt maturity profiles, potentially extend repayment timelines, and possibly refinance at different interest rates.

As of August 24, 2006, approximately $483.1 million in aggregate principal amount of the 'Old Notes' had been validly tendered. This includes $183.1 million of notes maturing in 2009-2010 and $300.0 million of notes maturing in 2011-2012.

The new debt includes 10.25% Senior Notes due 2013 being issued by CCH II, LLC, and 11.00% Senior Secured Notes due 2015 being issued by CCH I, LLC. Based on the tenders received, Charter anticipates issuing approximately $200.0 million of CCH II Notes and $212.0 million of CCH I Notes.

No, the filing indicates that a significant portion of the 'Old Notes' will remain outstanding. Approximately $593.2 million aggregate principal amount of 2009-2010 notes and $583.4 million aggregate principal amount of 2011-2012 notes would remain outstanding after the exchange, suggesting this is a partial debt restructuring.