8-KOther EventsExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Corporate Update (Sep 28, 2007)

Filed September 28, 2007For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on September 28, 2007, to report the results of an exchange offer for its outstanding 5.875% Convertible Senior Notes due 2009. The company successfully exchanged approximately 88% of its existing convertible notes, totaling $364 million, for new 6.50% Convertible Senior Notes due 2027. This proactive move aimed to manage its debt structure and extend maturities. The exchange offer resulted in Charter issuing $479 million in new convertible notes. Holders who participated in the exchange received $1,317.01 in principal amount of the new notes and $22.19 in cash per $1,000 of existing notes, along with payment for accrued interest. This transaction is significant for investors holding these notes, as it represents a substantial conversion and a shift in the company's debt profile with a higher coupon rate and a significantly longer maturity.

Key Highlights

  • 1Charter Communications successfully completed an exchange offer for its 5.875% Convertible Senior Notes due 2009.
  • 2Approximately 88% of the outstanding aggregate principal amount of existing notes ($364 million) were tendered and accepted.
  • 3Charter issued new 6.50% Convertible Senior Notes due 2027 in exchange for the existing notes.
  • 4The company will issue an aggregate of $479 million in principal amount of the new convertible notes.
  • 5Participating noteholders will receive $1,317.01 in principal amount of new notes and $22.19 in cash per $1,000 of existing notes accepted.
  • 6The exchange offer effectively extends the maturity of a significant portion of Charter's convertible debt.
  • 7The settlement date for the exchange offer is expected to be October 2, 2007.

Frequently Asked Questions

The 8-K filing reports the results of Charter Communications' exchange offer for its 5.875% Convertible Senior Notes due 2009. The company exchanged these notes for new 6.50% Convertible Senior Notes due 2027, indicating a strategy to manage its debt structure and extend maturities.

The exchange offer was largely successful, with approximately 88% of the $413 million aggregate principal amount of existing convertible notes being tendered and accepted. This amounts to $364 million of existing notes being exchanged.

Charter is issuing new 6.50% Convertible Senior Notes due 2027. For every $1,000 principal amount of existing notes exchanged, holders will receive $1,317.01 in principal amount of the new notes, plus $22.19 in cash for accrued interest.

This exchange offer effectively reduces the amount of short-term convertible debt (maturing in 2009) and replaces it with longer-term convertible debt (maturing in 2027) with a slightly higher coupon rate. This strategy helps Charter manage its near-term debt obligations and provides more financial flexibility.