Charter 2005 Annual Report Download - page 136

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2005 FORM 10-K
Notes to Consolidated Financial Statements (continued)
9. LONG-TERM DEBT 2005 2004
Long-term debt consists of the following as of December 31, Principal Accreted Principal Accreted
Amount Value Amount Value
2005 and 2004:
Charter Operating:
8% senior second-lien
2005 2004 notes due 2012 1,100 1,100 1,100 1,100
Principal Accreted Principal Accreted 83
/8% senior second-lien
Amount Value Amount Value notes due 2014 733 733 400 400
Renaissance Media Group
Long-Term Debt
LLC:
Charter Communications,
10.000% senior discount
Inc.:
notes due 2008 114 115 114 116
4.750% convertible senior
CC V Holdings, LLC:
notes due 2006 $20$20$ 156 $ 156
11.875% senior discount
5.875% convertible senior
notes due 2008 ——113 113
notes due 2009 863 843 863 834
Credit Facilities
Charter Holdings:
Charter Operating 5,731 5,731 5,515 5,515
8.250% senior notes due
2007 105 105 451 451 $19,336 $ 19,388 $19,791 $19,464
8.625% senior notes due
2009 292 292 1,244 1,243 The accreted values presented above generally represent
9.920% senior discount
notes due 2011 198 198 1,108 1,108 the principal amount of the notes less the original issue discount
10.000% senior notes due at the time of sale plus the accretion to the balance sheet date
2009 154 154 640 640 except as follows. The accreted value of the CIH notes issued in
10.250% senior notes due
2010 49 49 318 318 exchange for Charter Holdings notes and the CCH I notes
11.750% senior discount issued in exchange for the 8.625% Charter Holdings notes due
notes due 2010 43 43 450 448 2009 are recorded at the historical book values of the Charter
10.750% senior notes due Holdings notes for financial reporting purposes as opposed to
2009 131 131 874 874
11.125% senior notes due the current accreted value for legal purposes and notes
2011 217 217 500 500 indenture purposes (the amount that is currently payable if the
13.500% senior discount debt becomes immediately due). As of December 31, 2005, the
notes due 2011 94 94 675 589 accreted value of the Company’s debt for legal purposes and
9.625% senior notes due
2009 107 107 640 638 notes indenture purposes is $18.8 billion.
10.000% senior notes due On January 30, 2006, CCH II and CCH II Capital Corp.
2011 137 136 710 708 issued $450 million in debt securities, the proceeds of which will
11.750% senior discount be provided, directly or indirectly, to Charter Operating, which
notes due 2011 125 120 939 803
12.125% senior discount will use such funds to reduce borrowings, but not commitments,
notes due 2012 113 100 330 259 under the revolving portion of its credit facilities.
CIH: In October 2005, CCO Holdings and CCO Holdings
11.125% senior notes due Capital Corp., as guarantor thereunder, entered into the Bridge
2014 151 151 — —
9.920% senior discount Loan with the Lenders whereby the Lenders committed to
notes due 2014 471 471 — — make loans to CCO Holdings in an aggregate amount of
10.000% senior notes due $600 million. Upon the issuance of $450 million of CCH II
2014 299 299 — —
11.750% senior discount notes discussed above, the commitment under the bridge loan
notes due 2014 815 781 — — agreement was reduced to $435 million. CCO Holdings may
13.500% senior discount draw upon the facility between January 2, 2006 and
notes due 2014 581 578 — — September 29, 2006 and the loans will mature on the sixth
12.125% senior discount
notes due 2015 217 192 — — anniversary of the first borrowing under the bridge loan. Each
CCH I: loan will accrue interest at a rate equal to an adjusted LIBOR
11.000% senior notes due rate plus a spread. The spread will initially be 450 basis points
2015 3,525 3,683 — — and will increase (a) by an additional 25 basis points at the end
CCH II:
10.250% senior notes due of the six-month period following the date of the first
2010 1,601 1,601 1,601 1,601 borrowing, (b) by an additional 25 basis points at the end of
CCO Holdings: each of the next two subsequent three month periods and (c) by
83 /4% senior notes due 62.5 basis points at the end of each of the next two subsequent
2013 800 794 500 500
Senior floating notes due three-month periods. CCO Holdings will be required to prepay
2010 550 550 550 550 loans from the net proceeds from (i) the issuance of equity or
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