Charter 2009 Annual Report Download - page 70

CCH II, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2009, 2008, AND 2007
(dollars in millions, except where indicated)
F-22
8. Long-Term Debt
Long-term debt consists of the following as of December 31, 2009 and 2008:
Successor Predecessor
December 31, December 31,
2009 2008
Principal Accreted Principal Accreted
Amount Value Amount Value
CCH II, LLC:
10.250% senior notes due September 15, 2010 $ -- $ -- $ 1,860 $ 1,857
10.250% senior notes due October 1, 2013 -- -- 614 598
13.500% senior notes due November 15, 2016 1,766 2,092 -- --
CCO Holdings, LLC:
8 3/4% senior notes due November 15, 2013 800 812 800 796
Credit facility 350 304 350 350
Charter Communications Operating, LLC:
8.000% senior second-lien notes due April 30, 2012 1,100 1,120 1,100 1,100
8 3/8% senior second-lien notes due April 30, 2014 770 779 770 770
10.875% senior second-lien notes due September 15, 2014 546 601 546 527
Credit facilities 8,177 7,614 8,246 8,246
Total Debt $ 13,509 $ 13,322 $ 14,286 $ 14,244
Less: Current Portion 70 70 70 70
Long-Term Debt $ 13,439 $ 13,252 $ 14,216 $ 14,174
On the Effective Date, the Company applied fresh start accounting and as such adjusted its debt to reflect fair value.
Therefore, as of December 31, 2009, the accreted values presented above represent the fair value of the notes as of
the Effective Date, plus the accretion to the balance sheet date. However, the amount that is currently payable if the
debt becomes immediately due is equal to the principal amount of notes. As of December 31, 2008, the accreted
values presented above generally represented the principal amount of the notes less the original issue discount at the
time of sale, plus the accretion to the balance sheet date.
The exchange of CCH II debt described below resulted in a loss due to effects of the Plan of approximately $353
million for the eleven months ended November 30, 2009, included in the Predecessor company’ s consolidated
statements of operations. See Note 2.
CCH II, LLC Notes
On the Effective Date, CCH II and CCH II Capital Corp. issued approximately $1.8 billion in total principal amount
of new 13.5% senior notes. Existing holders of senior notes of CCH II and CCH II Capital Corp. (“CCH II Notes”)
exchanged $1.5 billion principal amount of their CCH II Notes plus accrued interest for $1.7 billion principal
amount ($2.0 billion fair value) of new 13.5% Senior Notes of CCH II and CCH II Capital Corp. (the “New CCH II
Notes”). CCH II Notes and accrued interest that were not exchanged were paid in cash by Charter in an amount
equal to $1.1 billion. The notes were thereafter transferred to Charter and cancelled.
The New CCH II Notes are senior debt obligations of CCH II and CCH II Capital Corp. The New CCH II Notes
rank equally with all other current and future unsecured, unsubordinated obligations of CCH II and CCH II Capital
Corp. The New CCH II notes are structurally subordinated to all obligations of the subsidiaries of CCH II, including
the CCO Holdings notes and credit facility and the Charter Operating notes and credit facilities.
At any time prior to the third anniversary of their issuance, CCH II will be permitted to redeem up to 35% of the
New CCH II Notes with the proceeds of an equity offering, for cash equal to 113.5% of the then-outstanding
principal amount of the New CCH II Notes being redeemed, plus accrued and unpaid interest. At or any time prior
to the third anniversary of their issuance, CCH II will be permitted to redeem the New CCH II Notes, in whole or in