8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Aug 30, 2006)

Filed August 30, 2006For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on August 30, 2006, reporting amendments and extensions to its previously announced offers for its indirect subsidiaries to exchange existing notes for new notes. The company is adjusting the aggregate principal amounts of new notes being offered and increasing the total consideration for certain older series of notes. This move is aimed at optimizing its debt structure by extending maturities and potentially reducing near-term cash outlays for debt repayment. Key changes include an increase in the aggregate principal amount of new 10.25% Senior Notes due 2013 (CCH II Notes) to $250.0 million from $200.0 million, and a slight decrease in the aggregate principal amount of new 11.00% Senior Secured Notes due 2015 (CCH I Notes) to $625.0 million from $675.0 million. The early participation date and expiration date for the exchange offers have been extended to September 12, 2006. Investors who tender their existing notes by this new early participation deadline will be eligible to receive an increased early participation payment.

Key Highlights

  • 1Charter Communications amended and extended its debt exchange offers via indirect subsidiaries CCH II and CCH I.
  • 2The maximum aggregate principal amount for new 10.25% Senior Notes due 2013 (CCH II Notes) has been increased to $250.0 million.
  • 3The maximum aggregate principal amount for new 11.00% Senior Secured Notes due 2015 (CCH I Notes) has been set at $625.0 million.
  • 4The offers are to exchange outstanding Charter Holdings notes maturing in 2009-2010 and 2011-2012 for the new notes.
  • 5The early participation date and expiration date for the exchange offers have been extended to September 12, 2006.
  • 6An increased early participation payment of $50.00 in principal amount of New Notes per $1,000 principal amount of Old Notes is offered for tenders before the extended early participation deadline.

Frequently Asked Questions

The primary purpose is to enable Charter's indirect subsidiaries to exchange older series of outstanding notes, which mature in 2009-2012, for new notes with later maturity dates (2013 and 2015). This aims to extend the company's debt maturity profile and manage its upcoming debt obligations.

The interest rates and maturity dates of the new notes remain the same: 10.25% Senior Notes due 2013 (CCH II Notes) and 11.00% Senior Secured Notes due 2015 (CCH I Notes). However, the aggregate principal amounts being offered for each series have been adjusted, with the CCH II Notes increasing and CCH I Notes slightly decreasing from previous announcements.

The early participation date and the final expiration date for the exchange offers have both been extended to September 12, 2006, at 11:59 PM Eastern Time. This provides noteholders with additional time to consider and tender their existing notes.

Yes, Charter is offering an early participation payment of $50.00 in principal amount of New Notes per $1,000 principal amount of Old Notes. To receive this payment, noteholders must tender their eligible outstanding notes prior to the extended early participation deadline of September 12, 2006.