Charter 2003 Annual Report Download - page 125

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CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2003, 2002 and 2001
(dollars in millions, except where indicated)
2007, each with diÅerent amortization schedules, one that began in June 2002 and one beginning in
September 2005; and two Term B facilities with a total principal amount of $2.7 billion, of which $1.8 billion
matures in March 2008 and $884 million matures in September 2008. The amortization of the principal
amount of the Term B term loan facilities is substantially ""back-ended,'' with more than 90% of the principal
balance due in the year of maturity. The Charter Operating credit facilities also provide for two revolving
credit facilities, in a total amount of $1.3 billion, one which will reduce annually beginning in March 2004 and
one which will reduce quarterly beginning in September 2005, with a maturity date in September 2007.
Supplemental credit facilities in the amount of $100 million may be available from lenders within or outside
the lending group that agree to provide it. Amounts under the Charter Operating credit facilities bear interest
at the Eurodollar rate or the base rate, each as deÑned, plus a margin of up to 3.0% for Eurodollar loans
(3.15% to 3.92% as of December 31, 2003 and 3.13% to 4.58% as of December 31, 2002) and 2.0% for base
rate loans. A quarterly commitment fee of between 0.25% and 0.375% per annum is payable on the
unborrowed balance of the revolving credit facilities.
As of December 31, 2003, outstanding borrowings under the Charter Operating credit facilities were
approximately $4.5 billion and the unused total potential availability was $681 million, although Ñnancial
covenants limited the availability under these facilities to $213 million as of December 31, 2003.
CC VI Operating Credit Facilities. The obligations under the CC VI Operating credit facilities are
guaranteed by CC VI Operating's parent, CC VI Holdings, LLC, and by the subsidiaries of CC VI Operating
other than immaterial subsidiaries. The obligations under the CC VI Operating credit facilities are secured by
pledges of all equity interests owned by CC VI Operating and its guarantor subsidiaries in other persons, and
by intercompany obligations owing CC VI Operating and/or its guarantor subsidiaries by their aÇliates, but
are not secured by other assets of CC VI Operating or its subsidiaries. The obligations under the CC VI
Operating credit facilities are also secured by pledges by CC VI Holdings of all equity interests it holds in
other persons, and intercompany obligations owing to it by its aÇliates, but are not secured by the other assets
of CC VI Holdings.
The CC VI Operating credit facilities provide for two term facilities, one with a principal amount of
$380 million that matures May 2008 (Term A), and the other with a principal amount of $372 million that
matures November 2008 (Term B). The CC VI Operating credit facilities also provide for a $350 million
reducing revolving credit facility with a maturity date in May 2008. Supplemental credit facilities in the
amount of approximately $300 million may be available until December 31, 2004 from lenders within or
outside the lending group that agree to provide it. Amounts under the CC VI Operating credit facilities bear
interest at the Eurodollar rate or the base rate, each as deÑned, plus a margin of up to 2.5% for Eurodollar
loans (2.40% to 3.66% as of December 31, 2003 and 2.62% to 4.31% as of December 31, 2002) and 1.5% for
base rate loans. A quarterly commitment fee of 0.25% per year is payable on the unborrowed balance of the
Term A facility and the revolving facility.
As of December 31, 2003, outstanding borrowings under the CC VI Operating credit facilities were
$868 million and unused total potential availability was $234 million, although Ñnancial covenants limited the
availability under these facilities to $119 million as of December 31, 2003.
Falcon Cable Credit Facilities. The obligations under the Falcon credit facilities are guaranteed by the
direct parent of Falcon Cable Communications, Charter Communications VII, LLC, and by the subsidiaries
of Falcon Cable Communications (except for certain excluded subsidiaries). The obligations under the Falcon
credit facilities are secured by pledges of all of the equity interests in the guarantor subsidiaries of Falcon
Cable Communications, but are not secured by other assets of Falcon Cable Communications or its
subsidiaries. The obligations under the Falcon credit facilities are also secured by a pledge of the equity
interests of Charter Communications VII in Falcon Cable Communications and intercompany obligations
F-27