Charter 2003 Annual Report Download - page 123

Download and view the complete annual report

Please find page 123 of the 2003 Charter annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2002 and 2001
(dollars in millions, except where indicated)
CCH II Notes. In September 2003, CCH II and CCH II Capital Corp. jointly issued $1.6 billion total
principal amount of 10.25% senior notes due 2010. The CCH II notes are general unsecured obligations of
CCH II and CCH II Capital Corp. They rank equally with all other current or future unsubordinated
obligations of CCH II and CCH II Capital Corp. The CCH II notes are structurally subordinated to all
obligations of subsidiaries of CCH II, including the CCO Holdings notes and the credit facilities.
Interest on the CCH II notes accrues at 10.25% per annum, from September 23, 2003 or, if interest
already has been paid, from the date it was most recently paid. Interest is payable semi-annually in arrears on
each March 15 and September 15, commencing on March 15, 2004.
At any time prior to September 15, 2006, the issuers of the CCH II notes may redeem up to 35% of the
total principal amount of the CCH II notes on a pro rata basis at a redemption price equal to 110.25% of the
principal amount of CCH II notes redeemed, plus any accrued and unpaid interest.
On or after September 15, 2008, the issuers of the CCH II notes may redeem all or a part of the notes at
a redemption price that declines ratably from the initial redemption price of 105.125% to a redemption price
on or after September 15, 2009 of 100.0% of the principal amount of the CCH II notes redeemed, plus, in
each case, any accrued and unpaid interest.
In the event of speciÑed change of control events, CCH II must oÅer to purchase the outstanding CCH
II notes from the holders at a purchase price equal to 101% of the total principal amount of the notes, plus any
accrued and unpaid interest.
CCO Holdings Notes. In November 2003, CCO Holdings and CCO Holdings Capital Corp. jointly
issued $500 million total principal amount of 8∂% senior notes due 2013. The CCO Holdings notes are
general unsecured obligations of CCO Holdings and CCO Holdings Capital Corp. They rank equally with all
other current or future unsubordinated obligations of CCO Holdings and CCO Holdings Capital Corp. The
CCO Holdings notes are structurally subordinated to all obligations of its subsidiaries, including the credit
facilities.
Interest on the CCO Holdings senior notes accrues at 8∂% per year, from November 10, 2003 or, if
interest already has been paid, from the date it was most recently paid. Interest is payable semi-annually in
arrears on each May 15 and November 15, commencing on May 15, 2004.
At any time prior to November 15, 2006, the issuers of the CCO Holdings senior notes may redeem up to
35% of the total principal amount of the CCO Holdings senior notes to the extent of public equity proceeds
they have received on a pro rata basis at a redemption price equal to 108.75% of the principal amount of CCO
Holdings senior notes redeemed, plus any accrued and unpaid interest.
On or after November 15, 2008, the issuers of the CCO Holdings senior notes may redeem all or a part of
the notes at a redemption price that declines ratably from the initial redemption price of 104.375% to a
redemption price on or after November 15, 2011 of 100.0% of the principal amount of the CCO Holdings
senior notes redeemed, plus, in each case, any accrued and unpaid interest.
In the event of speciÑed change of control events, CCO Holdings must oÅer to purchase the outstanding
CCO Holdings senior notes from the holders at a purchase price equal to 101% of the total principal amount of
the notes, plus any accrued and unpaid interest.
Renaissance Notes. In connection with the acquisition of Renaissance in April 1999, the Company
assumed $163 million principal amount at maturity of 10.000% senior discount notes due 2008 of which
$49 million was repurchased in May 1999. The Renaissance notes did not require the payment of interest until
April 15, 2003. From and after April 15, 2003, the Renaissance notes bear interest, payable semi-annually in
F-25