Charter 2007 Annual Report Download - page 53

Overview of Our Debt and Liquidity
We have significant amounts of debt. As of December 31, 2007, the accreted value of our total debt was approximately $19.9 billion, as
summarized below (dollars in millions):
Principal
Amount
Accreted
Value
(a)
Semi-Annual
Interest Payment
Dates Maturity Date
(b)
December 31, 2007
Charter Communications, Inc.:
5.875% convertible senior notes due 2009
(c)
$ 49 $ 49 5/16 & 11/16 11/16/09
6.50% convertible senior notes due 2027
(c)
479 353 4/1 & 10/1 10/1/27
Charter Holdings:
10.000% senior notes due 2009 88 88 4/1 & 10/1 4/1/09
10.750% senior notes due 2009 63 63 4/1 & 10/1 10/1/09
9.625% senior notes due 2009 37 37 5/15 & 11/15 11/15/09
10.250% senior notes due 2010 18 18 1/15 & 7/15 1/15/10
11.750% senior discount notes due 2010 16 16 1/15 & 7/15 1/15/10
11.125% senior notes due 2011 47 47 1/15 & 7/15 1/15/11
13.500% senior discount notes due 2011 60 60 1/15 & 7/15 1/15/11
9.920% senior discount notes due 2011 51 51 4/1 & 10/1 4/1/11
10.000% senior notes due 2011 69 69 5/15 & 11/15 5/15/11
11.750% senior discount notes due 2011 54 54 5/15 & 11/15 5/15/11
12.125% senior discount notes due 2012 75 75 1/15 & 7/15 1/15/12
CIH
(a)
:
11.125% senior notes due 2014 151 151 1/15 & 7/15 1/15/14
13.500% senior discount notes due 2014 581 581 1/15 & 7/15 1/15/14
9.920% senior discount notes due 2014 471 471 4/1 & 10/1 4/1/14
10.000% senior notes due 2014 299 299 5/15 & 11/15 5/15/14
11.750% senior discount notes due 2014 815 815 5/15 & 11/15 5/15/14
12.125% senior discount notes due 2015 217 217 1/15 & 7/15 1/15/15
CCH I
(a)
:
11.00% senior notes due 2015 3,987 4,083 4/1 & 10/1 10/1/15
CCH II
(a)
:
10.250% senior notes due 2010 2,198 2,192 3/15 & 9/15 9/15/10
10.250% senior notes due 2013 250 260 4/1 & 10/1 10/1/13
CCO Holdings:
83⁄4% senior notes due 2013 800 795 5/15 & 11/15 11/15/13
Credit facility 350 350 9/6/14
Charter Operating:
8.000% senior second-lien notes due 2012 1,100 1,100 4/30 & 10/30 4/30/12
83⁄8% senior second-lien notes due 2014 770 770 4/30 & 10/30 4/30/14
Credit facility 6,844 6,844 varies
$19,939 $19,908
(d)
(a)
The accreted values presented above generally represent the principal amount of the notes less the original issue discount at the time of sale, plus the accretion to the
balance sheet date. However, certain notes are recorded for financial reporting purposes at values different from the current accreted value for legal purposes and notes
indenture purposes (the amount that is currently payable if the debt becomes immediately due). As of December 31, 2007, the accreted value of our debt for legal purposes
and notes indentures purposes was $19.9 billion.
(b)
In general, the obligors have the right to redeem all of the notes set forth in the above table (except with respect to the 5.875% convertible senior notes due 2009, the
6.50% convertible senior notes due 2027, the 10.000% Charter Holdings notes due 2009, the 10.75% Charter Holdings notes due 2009, and the 9.625% Charter Holdings
notes due 2009) in whole or in part at their option, beginning at various times prior to their stated maturity dates, subject to certain conditions, upon the payment of the
outstanding principal amount (plus a specified redemption premium) and all accrued and unpaid interest. The 5.875% and 6.50% convertible senior notes are redeemable if
the closing price of Charter’s Class A common stock exceeds the conversion price by certain percentages as described below. For additional information see Note 9 to the
accompanying consolidated financial statements contained in “Item 8. Financial Statements and Supplementary Data.”
(c)
The 5.875% and 6.50% convertible senior notes are convertible at the option of the holders into shares of Class A common stock at a conversion rate, subject to certain
adjustments, of 413.2231 and 293.3868 shares per $1,000 principal amount of notes, which is equivalent to a price of $2.42 and $3.41 per share, respectively. Certain anti-
dilutive provisions cause adjustments to occur automatically upon the occurrence of specified events. Additionally, the conversion ratio may be adjusted by us under certain
circumstances. Each holder of 6.50% Convertible Notes will have the right to require us to purchase some or all of that holder’s 6.50% Convertible Notes for cash on
October 1, 2012, October 1, 2017 and October 1, 2022 at a purchase price equal to 100% of the principal amount of the 6.50% Convertible Notes plus any accrued interest,
if any, on the 6.50% Convertible Notes to but excluding the purchase date.
(d)
Not included within total long-term debt is the $65 million CCHC note, which is included in “note payable-related party” on our accompanying consolidated balance
sheets. See Note 10 to the accompanying consolidated financial statements contained in “Item 8. Financial Statements and Supplementary Data.”
CHARTER COMMUNICATIONS, INC. 2007 FORM 10-K
42