Summary
Charter Communications, Inc. (CHTR) announced on September 11, 2006, the results of its subsidiary's offer to exchange its 5.875% Convertible Senior Notes due 2009. The exchange offer, which expired on September 8, 2006, saw significant participation from noteholders, with $499.9 million principal amount tendered against a maximum acceptance of $450.0 million. Charter accepted $450.0 million of the tendered notes, meaning approximately 52.2% of the total outstanding convertible notes were exchanged. Due to the oversubscription, tendered amounts were prorated, with 90.0% of each holder's tender accepted. Following this exchange, $412.5 million of these convertible notes will remain outstanding, with settlement expected on September 14, 2006. This transaction effectively reduces the company's convertible debt.
Key Highlights
- 1Charter Communications announced the results of its 5.875% Convertible Senior Notes due 2009 exchange offer.
- 2The exchange offer expired on September 8, 2006, with $499.9 million principal amount of notes tendered.
- 3Charter accepted $450.0 million of the tendered notes, representing 52.2% of the total outstanding convertible notes.
- 4Due to oversubscription, tendered notes were prorated; 90.0% of each participating holder's tendered amount was accepted.
- 5Following the exchange, $412.5 million of the convertible notes will remain outstanding.
- 6The settlement date for the exchange is expected to be September 14, 2006.