Charter 2003 Annual Report Download - page 127

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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)
respect to the indentures governing the Company's notes and the notes of the Company's subsidiaries,
information requirements, events of default and Ñnancial covenants. The Ñnancial covenants, as deÑned,
measure performance against standards set for leverage, debt service coverage, and operating cash Öow
coverage of cash interest expense on a quarterly basis or as applicable. Additionally, the credit facilities
contain provisions requiring mandatory loan prepayments under speciÑc circumstances, including when
signiÑcant amounts of assets are sold and the proceeds are not promptly reinvested in assets useful in the
business of the borrower within a speciÑed period. The Charter Operating credit facility also provides that in
the event that any indebtedness of CCO Holdings remains outstanding on the date, which is six months prior
to the scheduled Ñnal maturity, the term loans under the Charter Operating credit facility will mature and the
revolving credit facilities will terminate on such date.
In the event of a default under the Company's subsidiaries' credit facilities or notes, the subsidiaries'
creditors could elect to declare all amounts borrowed, together with accrued and unpaid interest and other
fees, to be due and payable. In such event, the subsidiaries' credit facilities and indentures that were so
accelerated or were otherwise in default will not permit the Company's subsidiaries to distribute funds to
Charter Holdco or the Company to pay interest or principal on the notes. A default under the covenants
governing any of the Company's debt instruments could result in the acceleration of its payment obligations
under that debt and, under certain circumstances, in cross-defaults under the Company's other debt
obligations, which would have a material adverse eÅect on the Company's consolidated Ñnancial condition or
results of operations. In addition, the lenders under the Company's credit facilities could foreclose on their
collateral, which includes equity interests in the Company's subsidiaries, and exercise other rights of secured
creditors. In any such case, the Company might not be able to repay or make any payments on its notes.
Additionally, such a default would cause a cross-default in the indentures governing the Charter Holdings
notes and the convertible senior notes and would trigger the cross-default provision of the Charter Operating
Credit Agreement. Any default under any of the subsidiaries' credit facilities or notes might adversely aÅect
the holders of the Company's notes and the Company's growth, Ñnancial condition and results of operations
and could force the Company to examine all options, including seeking the protection of the bankruptcy laws.
Based upon outstanding indebtedness as of December 31, 2003, the amortization of term loans, scheduled
reductions in available borrowings of the revolving credit facilities, and the maturity dates for all senior and
subordinated notes and debentures, total future principal payments on the total borrowings under all debt
agreements as of December 31, 2003, are as follows:
Year Amount
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 188
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,044
2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,155
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,531
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,762
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10,528
$19,208
For the amounts of debt scheduled to mature during 2004, it is management's intent to fund the
repayments from borrowings on the Company's revolving credit facility. The accompanying consolidated
balance sheet reÖects this intent by presenting all debt balances as long-term while the table above reÖects
actual debt maturities as of the stated date.
F-29