Summary
Charter Communications, Inc. (CHTR) has filed an 8-K report detailing the determined exchange consideration for its subsidiary's (Charter Holdco) offer to exchange its outstanding 5.875% Convertible Senior Notes due 2009 for new 6.5% Convertible Senior Notes due 2027. The exchange offer covers all $413 million of the existing notes. The exchange consideration is based on Charter's Class A common stock's 10-day volume-weighted average price (VWAP) ending September 25, 2007, which was calculated at $2.6219 per share. On the expected settlement date of October 2, 2007, holders tendering their notes will receive $1,317.01 in principal amount of the new convertible notes and $22.19 in cash per $1,000 principal amount of existing notes, which includes accrued interest.
Key Highlights
- 1Charter Communications is conducting an exchange offer for its 5.875% Convertible Senior Notes due 2009.
- 2The exchange offer is for any and all of the $413 million aggregate principal amount of existing notes.
- 3The exchange consideration is determined by the 10-day volume-weighted average price (VWAP) of Charter's Class A common stock, which was $2.6219.
- 4Holders will receive $1,317.01 in principal of new 6.5% Convertible Senior Notes due 2027 per $1,000 of existing notes tendered.
- 5In addition to new notes, holders will receive $22.19 in cash per $1,000 of existing notes for accrued interest.
- 6The expected settlement date for the exchange offer is October 2, 2007.
- 7The announcement was made via a press release filed as an exhibit to this 8-K.