Charter 2004 Annual Report Download - page 124

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2004 FORM 10-K
Notes to Consolidated Financial Statements (continued)
9. LONG-TERM DEBT 2004 2003
Long-term debt consists of the following as of December 31, Face Accreted Face Accreted
Value Value Value Value
2004 and 2003:
CC V Holdings, LLC:
2004 2003 11.875% senior discount
Face Accreted Face Accreted notes due 2008 113 113 113 113
Value Value Value Value Credit Facilities
Long-Term Debt Charter Operating 5,515 5,515 4,459 4,459
Charter Communications, CC VI Operating ——868 868
Inc.:
5.75% convertible senior Falcon Cable ——856 856
notes due 2005 $—$—$ 618 $ 618 CC VIII Operating ——1,044 1,044
4.750% convertible
senior notes due 2006 156 156 156 156 $ 19,791 $ 19,464 $19,208 $18,647
5.875% convertible
senior notes due 2009 863 834 — —
The accreted values presented above represents the face
Charter Holdings: value of the notes less the original issue discount at the time of
8.250% senior notes due sale plus the accretion to the balance sheet date.
2007 451 451 451 450
8.625% senior notes due On November 22, 2004, the Company issued $862.5 million
2009 1,244 1,243 1,244 1,242 original principal amount of 5.875% convertible senior notes due
9.920% senior discount 2009, which are convertible into shares of Charter’s Class A
notes due 2011 1,108 1,108 1,108 1,082 common stock, par value $.001 per share, at a rate of
10.000% senior notes 413.2231 shares per $1,000 principal amount of notes (or
due 2009 640 640 640 640
10.250% senior notes approximately $2.42 per share), subject to adjustment in certain
due 2010 318 318 318 318 circumstances. On December 23, 2004, the Company used a
11.750% senior discount portion of the proceeds from the sale of the notes to redeem all
notes due 2010 450 448 450 400 of its outstanding 5.75% convertible senior notes due 2005 (total
10.750% senior notes principal amount of $588 million). The redemption resulted in a
due 2009 874 874 874 873
11.125% senior notes loss on extinguishment of debt of $10 million.
due 2011 500 500 500 500 In April 2004, Charter’s indirect subsidiaries, Charter
13.500% senior discount Operating and Charter Communications Operating Capital
notes due 2011 675 589 675 517 Corp., sold $1.5 billion of senior second-lien notes in a private
9.625% senior notes due transaction. Additionally, Charter Operating amended and
2009 640 638 640 638
10.000% senior notes restated its $5.1 billion credit facilities, among other things, to
due 2011 710 708 710 708 defer maturities and increase availability under those facilities to
11.750% senior discount approximately $6.5 billion, consisting of a $1.5 billion six-year
notes due 2011 939 803 939 717 revolving credit facility, a $2.0 billion six-year term loan facility
12.125% senior discount and a $3.0 billion seven-year term loan facility. Charter
notes due 2012 330 259 330 231
Operating used the additional borrowings under the amended
CCH II, LLC: and restated credit facilities, together with proceeds from the
10.250% senior notes
due 2010 1,601 1,601 1,601 1,601 sale of the Charter Operating senior second-lien notes to
refinance the credit facilities of its subsidiaries, CC VI Operating
CCO Holdings, LLC: Company, LLC (‘‘CC VI Operating’’), Falcon Cable Communi-
83 /4% senior notes due
2013 500 500 500 500 cations, LLC (‘‘Falcon Cable’’), and CC VIII Operating, LLC
Senior floating notes due (‘‘CC VIII Operating’’), all in concurrent transactions. In addi-
2010 550 550 — — tion, Charter Operating was substituted as the lender in place of
Charter Operating: the banks under those subsidiaries’ credit facilities. These
8% senior second-lien transactions resulted in losses on extinguishment of debt of
notes due 2012 1,100 1,100 — — $21 million.
83 /8% senior second-lien The Company recognized a loss of approximately $23 mil-
notes due 2014 400 400 — —
lion recorded as loss on debt to equity conversion on the
Renaissance Media Group accompanying consolidated statement of operations for the year
LLC: ended December 31, 2004 from privately negotiated exchanges
10.000% senior discount
notes due 2008 114 116 114 116 of a total of $30 million principal amount of Charter’s
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