Charter 2002 Annual Report Download - page 44

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Credit Facility Terms, Restrictions and Covenants
The following table presents information relative to borrowing and covenant compliance under our credit
facilities as of December 31, 2002 (dollars in millions):
Charter CC VI Falcon Cable CC VIII
Operating Operating Communications Operating Total
Credit facilities outstanding ÏÏÏÏÏÏÏÏÏ $ 4,542 $ 926 $ 1,155 $ 1,166 $ 7,789
Other debt(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 203 25 1 6 236
Intercompany debt(2) ÏÏÏÏÏÏÏÏÏÏÏÏÏ 73 10 49 Ì 132
Total deÑned bank debt(3) ÏÏÏÏÏÏÏÏÏ $ 4,818 $ 961 $ 1,205 $ 1,172 $ 8,157
Adjusted EBITDA(4) ÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1,141 $ 174 $ 283 $ 293 N/A
Bank Compliance Leverage Ratio
(Total Debt/Adjusted
EBITDA)(5) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.22 5.52 4.26 4.00 N/A
Maximum Allowable Leverage
Ratio(6)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 4.50 6.25 5.00 5.50 N/A
Total Credit Facilities(7)ÏÏÏÏÏÏÏÏÏÏÏ $ 5,175 $ 1,200 $ 1,328 $ 1,492 $ 9,195
Potential Bank Availability(8) ÏÏÏÏÏÏ $ 318 $ 127 $ 173 $ 326 $ 944
Customer relationships(9) ÏÏÏÏÏÏÏÏÏÏ 4,023,200 586,700 1,077,300 947,500 6,634,700
(1) Includes other permitted bank level debt, capitalized leases and letters of credit, which are classiÑed as
debt by the respective credit facility agreements for the calculation of maximum allowable leverage. For
Charter Operating, this includes the Renaissance Media Group LLC senior discount notes with an
accreted value of $113 million as of December 31, 2002.
(2) Includes permitted intercompany loans between Charter Holdings or Charter Communications Holding
Company to the respective bank group entities. These amounts eliminate in consolidation.
(3) This represents our subsidiaries' total debt as deÑned for purposes of the covenants in their respective
credit agreements.
(4) Adjusted EBITDA for each borrowing entity is presented as determined pursuant to the related credit
facilities agreement. Adjusted EBITDA is a key Ñnancial measure by which our covenants are calculated
under our debt instruments and is included herein to provide additional information with respect to our
subsidiaries' ability to meet their debt service requirements, but should not be construed as an alternative
to operating income or cash Öows from operating activities, as determined in accordance with generally
accepted accounting principles.
(5) Bank Compliance Leverage Ratio represents total debt as of such date determined as deÑned in the
applicable credit agreement, including intercompany debt, divided by Adjusted EBITDA, annualized.
(6) Maximum Allowable Leverage Ratio represents the maximum bank compliance leverage ratio permitted
under the respective bank agreements. This is the most restrictive of the Ñnancial covenants.
(7) Total Credit Facilities represents the total borrowing capacity of the credit facility.
(8) Potential Bank Availability represents the Total Credit Facilities capacity less Credit Facilities Outstand-
ing, adjusted for any limitations due to covenant restrictions.
(9) Represents the estimated number of customer relationships served by the entities subject to each credit
agreement. See note (k) on page 11 for a deÑnition of customer relationships.
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