Charter 2010 Annual Report Download - page 63

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transactions will be subject to market conditions. Additionally, we may, from time to time, depending on market conditions and other
factors, use cash on hand and the proceeds from securities offerings or other borrowings, to retire our debt through open market purchases,
privately negotiated purchases, tender offers, or redemption provisions.
Our business also requires significant cash to fund capital expenditures and ongoing operations. Our projected cash needs and projected
sources of liquidity depend upon, among other things, our actual results, and the timing and amount of our expenditures. We believe we have
sufficient liquidity from cash on hand, free cash flow and Charter Operating’s revolving credit facility as well as access to the capital markets to
fund our projected operating cash needs.
Free Cash Flow
Free cash flow was $710 million for the year ended December 31, 2010 compared to negative free cash flow of $550 million and $842 million
for the years ended December, 31, 2009 and 2008, respectively. e increase in free cash flow in 2010 compared to 2009 is primarily due to
decreases in cash paid for interest and reorganization items offset by increases in capital investments to enhance our residential and commercial
products and service capabilities. e decrease in negative free cash flow in 2009 compared to 2008 is primarily due to a decrease in cash paid
for interest and an increase in Adjusted EBITDA, offset by reorganization items.
Long-Term Debt
As of December 31, 2010, the accreted value of our total debt was approximately $12.3 billion, as summarized below (dollars in millions):
December 31, 2010
Principal
Amount
Accreted
Value (a)
Semi-Annual
Interest Payment
Dates
Maturity
Date (b)
CCH II, LLC:
13.5% senior notes due 2016 $ 1,766 $ 2,057 2/15 & 8/15 11/30/16
CCO Holdings, LLC:
7.25% senior notes due 2017 1,000 1,000 4/30 & 10/30 10/30/17
7.875% senior notes due 2018 900 900 4/30 & 10/30 4/30/18
8.125% senior notes due 2020 700 700 4/30 & 10/30 4/30/20
Credit facility 350 314 9/6/14
Charter Communications Operating, LLC:
8.00% senior second-lien notes due 2012 1,100 1,112 4/30 & 10/30 4/30/12
10.875% senior second-lien notes due 2014 546 591 3/15 & 9/15 9/15/14
Credit facilities 5,954 5,632 Varies (c)
$ 12,316 $ 12,306
e accreted values of the CCH II and Charter Operating notes and the CCO Holdings and Charter Operating credit facilities presented
above represent the fair value of the debt 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 the debt. We have availability under the
revolving portion of our credit facility of approximately $1.1 billion as of December 31, 2010.
In general, the obligors have the right to redeem all of the notes set forth in the above table 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. For additional information see Note 7 to the accompanying
consolidated financial statements contained in “Item 8. Financial Statements and Supplementary Data.”
Includes $2.4 billion and $307 million principal amount of term B-1 and term B-2 loans, respectively, repayable in equal quarterly
installments and aggregating in each loan year to 1% of the original amount of the term loan, with the remaining balance due at final
maturity on March 6, 2014, $3.0 billion principal amount of the term C loan repayable in equal quarterly installments and aggregating
a)
b)
c)