Charter 2002 Annual Report Download - page 95

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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)
May 2001 Charter Holdings Notes. In May 2001, Charter Holdings and Charter Capital issued
$1.94 billion in aggregate principal amount of senior notes. The May 2001 Charter Holdings notes consisted of
$350 million in aggregate principal amount of 9.625% senior notes due 2009, $575 million in aggregate
principal amount of 10.000% senior notes due 2011 and $1.0 billion in aggregate principal amount at maturity
of 11.750% senior discount notes due 2011. The net proceeds of approximately $1.47 billion were used to pay a
portion of the purchase price of the AT&T transactions, repay all amounts outstanding under the Charter
Operating and Falcon Cable revolving credit facilities and for general corporate purposes, including capital
expenditures.
The 9.625% senior notes are not redeemable prior to maturity. Interest is payable semiannually in arrears
on May 15 and November 15, beginning November 15, 2001, until maturity.
The 10.000% senior notes are redeemable at the option of the Issuers at amounts decreasing from
105.000% to 100% of par value plus accrued and unpaid interest beginning on May 15, 2006, to the date of
redemption. At any time prior to May 15, 2004, the Issuers may redeem up to 35% of the aggregate principal
amount of the 10.000% senior notes at a redemption price of 110.000% of the principal amount under certain
conditions. Interest is payable semiannually in arrears on May 15 and November 15, beginning November 15,
2001, 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, 2006. At any time prior to May 15, 2004, the
Issuers may redeem up to 35% of the aggregate principal amount of the 11.750% senior discount notes at a
redemption price of 111.750% of the accreted value under certain conditions. Thereafter, cash interest is
payable semiannually in arrears on May 15 and November 15 beginning November 15, 2006, until maturity.
The discount on the 11.750% senior discount notes is being accreted using the eÅective interest method.
January 2002 Charter Holdings Notes. In January 2002, Charter Holdings and Charter Capital, issued
$1.1 billion in aggregate principal amount at maturity of senior notes and senior discount notes. The January
2002 Charter Holdings notes consisted of $350 million in aggregate principal amount of 9.625% senior notes
due 2009, $300 million in aggregate principal amount of 10.000% senior notes due 2011 and $450 million in
aggregate principal amount at maturity of 12.125% senior discount notes due 2012. The net proceeds of
approximately $873 million were primarily used to repay a portion of the amounts outstanding under the
revolving credit facilities of the Company's subsidiaries.
The 9.625% senior notes are not redeemable prior to maturity. Interest is payable semi-annually in arrears
on May 15 and November 15, beginning May 15, 2002, until maturity.
The 10.000% senior notes are redeemable at the option of the Issuers at amounts decreasing from
105.000% to 100% of par value plus accrued and unpaid interest beginning on May 15, 2006, to the date of
redemption. At any time prior to May 15, 2004, the Issuers may redeem up to 35% of the aggregate principal
amount of the 10.000% senior notes at a redemption price of 110.000% of the principal amount under certain
conditions. Interest is payable semi-annually in arrears on May 15 and November 15, beginning May 15, 2002,
until maturity.
The 12.125% senior discount notes are redeemable at the option of the Issuers at amounts decreasing
from 106.063% to 100% of accreted value beginning January 15, 2007. At any time prior to January 15, 2005,
the issuers may redeem up to 35% of the aggregate principal amount of the 12.125% senior discount notes at a
redemption price of 112.125% of the accreted value under certain conditions. Cash interest is payable semi-
annually in arrears on January 15 and July 15 beginning July 15, 2007, until maturity. The discount on the
12.125% senior discount notes is being accreted using the eÅective interest method.
F-27