Charter 2003 Annual Report Download - page 63

Credit Facility and Existing Notes Terms, Restrictions and Covenants
The following table presents information relative to borrowing and covenant compliance under our credit
facilities as of December 31, 2003 (dollars in millions):
Charter CC VI Falcon Cable CC VIII
Operating Operating Communications Operating Total
Credit facilities outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,459 $ 868 $ 856 $1,044 $7,227
Other debt(1) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 233 21 Ì 23 277
Intercompany debt(2)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 37 Ì Ì Ì 37
Total deÑned bank debt(3) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $4,729 $ 889 $ 856 $1,067 $7,541
Adjusted EBITDA(4) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,235 $ 183 $ 272 $ 299 N/A
Bank Compliance Leverage Ratio
(Total Debt/Adjusted EBITDA)(5) ÏÏÏÏÏÏ 3.83 4.85 3.15 3.56 N/A
Maximum Allowable Leverage Ratio(6) ÏÏÏÏÏ 4.00 5.50 4.50 4.00 N/A
Total Credit Facilities(7) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $5,140 $1,102 $1,310 $1,407 $8,959
Potential Bank Availability(8)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 213 $ 119 $ 366 $ 130 $ 828
(1) Includes other permitted bank level debt, capitalized leases and letters of credit, which are classiÑed as
debt by the respective credit facility agreements for the calculation of maximum allowable leverage. For
Charter Operating, this includes the Renaissance Media Group LLC senior discount notes with an
accreted value of $116 million as of December 31, 2003.
(2) Includes permitted intercompany loans between Charter Holdings or Charter Communications Holding
Company to the respective bank group entities. These amounts eliminate in consolidation.
(3) This represents our subsidiaries' total debt as deÑned for purposes of the covenants in their respective
credit agreements.
(4) Adjusted EBITDA in our credit facilities is not deÑned the same for all of our borrowing entities.
Generally, however, Adjusted EBITDA approximates EBITDA (net income (loss) before interest, taxes,
depreciation and amortization and minority interest) adjusted for certain non-cash items including
impairment of franchises, option compensation expense and gain/loss on derivative instruments and in
some cases non-recurring charges such as special charges and certain other expense or income items.
Adjusted EBITDA as deÑned in our credit facilities also excludes certain corporate costs, as deÑned.
(5) Bank Compliance Leverage Ratio represents total debt as of such date determined as deÑned in the
applicable credit agreement, including intercompany debt, divided by Adjusted EBITDA, annualized.
(6) Maximum Allowable Leverage Ratio represents the maximum bank compliance leverage ratio permitted
under the respective bank agreements. This is the most restrictive of the Ñnancial covenants.
(7) Total Credit Facilities represents the total borrowing capacity of the credit facilities.
(8) Potential Bank Availability represents the Total Credit Facilities capacity less Credit Facilities Outstand-
ing, adjusted for any limitations due to covenant restrictions.
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