Charter 2010 Annual Report Download - page 67

                                         


Overview
As of December 31, 2010 and 2009, the blended weighted average
interest rate on our debt was 6.7% and 5.5%, respectively. e
interest rate on approximately 65% and 37% of the total principal
amount of our debt was effectively fixed, including the effects of
our interest rate hedge agreements, if any, as of December 31, 2010
and 2009, respectively. e fair value of our high-yield notes was
$6.6 billion and $5.4 billion at December 31, 2010 and 2009,
respectively. e fair value of our credit facilities was $6.3 billion
and $8.0 billion at December 31, 2010 and 2009, respectively. e
fair value of our high-yield notes and credit facilities were based on
quoted market prices.
e following description is a summary of certain provisions of
our credit facilities and our notes (the “Debt Agreements”). e
summary does not restate the terms of the Debt Agreements in their
entirety, nor does it describe all terms of the Debt Agreements. e
agreements and instruments governing each of the Debt Agreements
are complicated and you should consult such agreements and
instruments for more detailed information regarding the Debt
Agreements.

CCO Holdings Credit Facility
In March 2007, CCO Holdings entered into a credit agreement
(the “CCO Holdings credit facility”) which consists of a $350
million term loan facility. e facility matures in September 2014.
Borrowings under the CCO Holdings credit facility bear interest at
a variable interest rate based on either LIBOR or a base rate plus, in
either case, an applicable margin. e applicable margin for LIBOR
term loans is 2.50% above LIBOR. If an event of default were to
occur, CCO Holdings would not be able to elect LIBOR and would
have to pay interest at the base rate plus the applicable margin. e
CCO Holdings credit facility is secured by the equity interests of
Charter Operating, and all proceeds thereof.
Charter Operating Credit Facilities
e Charter Operating credit facilities have an outstanding principal
amount of $6.0 billion at December 31, 2010 as follows:
A term B-1 loan with a remaining principal amount of
approximately $2.4 billion, which is repayable in equal quarterly
•
installments and aggregating $25 million in each loan year, with
the remaining balance due at final maturity on March 6, 2014;
A term B-2 loan with a remaining principal amount of
approximately $307 million, which is repayable in equal
quarterly installments and aggregating $3 million in each loan
year, with the remaining balance due at final maturity on March
6, 2014;
A term C loan with a remaining principal amount of approximately
$3.0 billion, which is repayable in equal quarterly installments
and aggregating $30 million in each loan year, with the
remaining balance due at final maturity on September 6, 2016;
A non-revolving loan with a remaining principal amount of
approximately $199 million repayable in full on March 6, 2013;
and
A revolving loan with an outstanding balance of $80 million at
December 31, 2010 and allowing for borrowings of up to $1.3 billion.
e revolving loan matures in March 2015. However, if on
December 1, 2013 Charter Operating has scheduled maturities in
excess of $1.0 billion between January 1, 2014 and April 30, 2014,
the revolving loan will mature on December 1, 2013 unless lenders
holding more than 50% of the revolving loan consent to the maturity
being March 2015. As of January 31, 2011, Charter Operating had
maturities of $1.3 billion between January 1, 2014 and April 30,
2014. e revolving credit facility amount may be increased, but it
may not exceed $1.75 billion in aggregate revolving commitments
plus the amount outstanding under the non-revolving loan.
Amounts outstanding under the Charter Operating credit facilities
bear interest, at Charter Operating’s election, at a base rate or
LIBOR, as defined, plus a margin. e applicable LIBOR margin for
the non-revolving loans and the term B-1 loans is 2%. e LIBOR
term B-2 loan bears interest at LIBOR plus 5.0%, with a LIBOR floor
of 3.5%, or at Charter Operating’s election, a base rate plus a margin
of 4.00%. Charter Operating has currently elected to pay based on
the base rate. e applicable margin for the term C loans is currently
3.25% in the case of LIBOR loans, provided that if certain other
term loans are borrowed or certain extended loans are established,
then the term C loans shall automatically increase to the extent
necessary to cause the yield for the term C loans to be 25 basis points
•
•
•
•