Charter 2002 Annual Report Download - page 94

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2002, 2001 and 2000
(dollars in millions, except where indicated)
The 9.920% senior discount notes are redeemable at the option of the Issuers at amounts decreasing from
104.960% to 100% of accreted value beginning April 1, 2004. Thereafter, cash interest is payable semiannually
in arrears on April 1 and October 1 beginning October 1, 2004, until maturity. The discount on the 9.920%
senior discount notes is being accreted using the eÅective interest method.
January 2000 Charter Holdings Notes. In January 2000, Charter Holdings and Charter Capital issued
$1.5 billion principal amount of senior notes. The January 2000 Charter Holdings notes consisted of
$675 million in aggregate principal amount of 10.000% senior notes due 2009, $325 million in aggregate
principal amount of 10.250% senior notes due 2010, and $532 million in aggregate principal amount at
maturity of 11.750% senior discount notes due 2010. The net proceeds of approximately $1.25 billion were
used to consummate change of control oÅers for certain of the Falcon, Avalon and Bresnan notes and
debentures.
The 10.000% senior notes are not redeemable prior to maturity. Interest is payable semiannually on
April 1 and October 1, beginning April 1, 2000 until maturity.
The 10.250% senior notes are redeemable at the option of the Issuers at amounts decreasing from
105.125% to 100% of par value plus accrued and unpaid interest, beginning on January 15, 2005, to the date of
redemption. Interest is payable semiannually in arrears on January 15 and July 15, beginning on July 15, 2000,
until maturity.
The 11.750% senior discount notes are redeemable at the option of the Issuers at amounts decreasing
from 105.875% to 100% of accreted value beginning January 15, 2005. Interest is payable semiannually in
arrears on January 15 and July 15, beginning on July 15, 2005, until maturity. The discount on the 11.750%
senior discount notes is being accreted using the eÅective interest method.
January 2001 Charter Holdings Notes. In January 2001, Charter Holdings and Charter Capital issued
$2.1 billion in aggregate principal amount of senior notes. The January 2001 Charter Holdings notes consisted
of $900 million in aggregate principal amount of 10.750% senior notes due 2009, $500 million in aggregate
principal amount of 11.125% senior notes due 2011 and $675 million in aggregate principal amount at maturity
of 13.500% senior discount notes due 2011. The net proceeds of approximately $1.72 billion were used to repay
all remaining amounts then outstanding under the Charter Holdings 2000 senior bridge loan facility and the
CC VI revolving credit facility and a portion of the amounts then outstanding under the Charter Operating
and CC VII revolving credit facilities and for general corporate purposes.
The 10.750% senior notes are not redeemable prior to maturity. Interest is payable semiannually in
arrears on April 1 and October 1, beginning October 1, 2001, until maturity.
The 11.125% senior notes are redeemable at the option of the Issuers at amounts decreasing from
105.563% to 100% of par value plus accrued and unpaid interest beginning on January 15, 2006, to the date of
redemption. At any time prior to January 15, 2004, the Issuers may redeem up to 35% of the aggregate
principal amount of the 11.125% senior notes at a redemption price of 111.125% of the principal amount under
certain conditions. Interest is payable semiannually in arrears on January 15 and July 15, beginning July 15,
2001, until maturity.
The 13.500% senior discount notes are redeemable at the option of the Issuers at amounts decreasing
from 106.750% to 100% of accreted value beginning January 15, 2006. At any time prior to January 15, 2004,
the Issuers may redeem up to 35% of the aggregate principal amount of the 13.500% senior discount notes at a
redemption price of 113.500% of the accreted value under certain conditions. Thereafter, cash interest is
payable semiannually in arrears on January 15 and July 15 beginning July 15, 2006, until maturity. The
discount on the 13.500% senior discount notes is being accreted using the eÅective interest method.
F-26