Charter 2007 Annual Report Download - page 93

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Principal
Amount
Accreted
Value
Principal
Amount
Accreted
Value
2007 2006
Charter Holdings:
8.250% senior notes due
April 1, 2007 ——105 105
8.625% senior notes due
April 1, 2009 ——187 187
10.000% senior notes due
April 1, 2009 88 88 105 105
10.750% senior notes due
October 1, 2009 63 63 71 71
9.625% senior notes due
November 15, 2009 37 37 52 52
10.250% senior notes due
January 15, 2010 18 18 32 32
11.750% senior discount
notes due January 15, 2010 16 16 21 21
11.125% senior notes due
January 15, 2011 47 47 52 52
13.500% senior discount
notes due January 15, 2011 60 60 62 62
9.920% senior discount notes
due April 1, 2011 51 51 63 63
10.000% senior notes due
May 15, 2011 69 69 71 71
11.750% senior discount
notes due May 15, 2011 54 54 55 55
12.125% senior discount
notes due January 15, 2012 75 75 91 91
CIH:
11.125% senior notes due
January 15, 2014 151 151 151 151
13.500% senior discount
notes due January 15, 2014 581 581 581 581
9.920% senior discount notes
due April 1, 2014 471 471 471 471
10.000% senior notes due
May 15, 2014 299 299 299 299
11.750% senior discount
notes due May 15, 2014 815 815 815 815
12.125% senior discount
notes due January 15, 2015 217 217 217 216
CCH I:
11.000% senior notes due
October 1, 2015 3,987 4,083 3,987 4,092
CCH II:
10.250% senior notes due
September 15, 2010 2,198 2,192 2,198 2,190
10.250% senior notes due
October 1, 2013 250 260 250 262
CCO Holdings:
Senior floating notes due
December 15, 2010 ——550 550
83⁄4% senior notes due
November 15, 2013 800 795 800 795
Credit facility 350 350 — —
Principal
Amount
Accreted
Value
Principal
Amount
Accreted
Value
2007 2006
Charter Operating:
8.000% senior second-lien
notes due April 30, 2012 1,100 1,100 1,100 1,100
83⁄8% senior second-lien notes
due April 30, 2014 770 770 770 770
Credit facilities 6,844 6,844 5,395 5,395
$19,939 $19,908 $18,964 $19,062
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 of the 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 the Company’s debt
for legal purposes and notes indenture purposes is $19.9 billion.
Charter Convertible Notes
The Charter convertible notes rank equally with any of Charter’s
future unsubordinated and unsecured indebtedness, but are struc-
turally subordinated to all existing and future indebtedness and
other liabilities of Charter’s subsidiaries. As of December 31,
2007, there was $528 million in accreted value for legal purposes
and notes indentures purposes.
The 5.875% convertible senior notes are convertible at any
time at the option of the holder into shares of Class A common
stock at an initial conversion rate of 413.2231 shares per $1,000
principal amount of notes, which is equivalent to a conversion
price of approximately $2.42 per share, subject to certain adjust-
ments. Specifically, the adjustments include anti-dilutive provi-
sions, which cause adjustments to occur automatically based on
the occurrence of specified events to provide protection rights to
holders of the notes. The conversion rate may also be increased
(but not to exceed 462 shares per $1,000 principal amount of
notes) upon a specified change of control transaction. Addition-
ally, Charter may elect to increase the conversion rate under
certain circumstances when deemed appropriate, and subject to
applicable limitations of the NASDAQ Global Select Market.
Charter may redeem the 5.875% convertible senior notes in
whole or in part for cash at any time at a redemption price equal
to 100% of the aggregate principal amount, plus accrued and
unpaid interest, if any, but only if for any 20 trading days in any
30 consecutive trading day period the closing price has exceeded
150% of the conversion price. Holders who convert 5.875%
convertible senior notes that we have called for redemption shall
receive the present value of the interest on the notes converted
that would have been payable for the period from the redemp-
tion date through the scheduled maturity date for the notes, plus
any accrued interest.
F-15
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES 2007 FORM 10-K
Notes to Consolidated Financial Statements (continued)