Charter
Announces Closing of Loan Facilities
ST.
LOUIS--March 6, 2007--Charter Communications, Inc. (NASDAQ:CHTR, “Charter” or
the “Company”) announced today that its indirect subsidiaries, Charter
Communications Operating, LLC (“Charter Operating”) and CCO Holdings, LLC (‘CCO
Holdings’), closed on portions of the $8.35 billion bank refinancings announced
in February 2007.
Charter
Operating closed on a new $1.5 billion revolving credit facility and a new
$1.5
billion term facility, both with interest rates of LIBOR plus 2.0%. The
refinancing of the $5 billion term loan portion of the Charter Operating
facilities is expected to close in late April 2007 with pricing at LIBOR plus
2.0%, down from the existing rate of LIBOR plus 2.625%. Also today, CCO Holdings
closed on a new $350 million third lien term loan with an interest rate of
LIBOR
plus 2.5%. These new facilities are expected to fund at various times over
the
next two months.
The
$8.35
billion of new senior secured credit facilities will refinance the existing
$6.85 billion senior secured credit facilities at Charter Operating in addition
to securities at various other Charter subsidiaries. In conjunction with the
bank refinancing, the Company today announced (i) a $100 million tender offer
for certain notes outstanding at Charter Communications Holdings, LLC (“Charter
Holdings”), (ii) that CCO Holdings has called for redemption $550 million of CCO
Holdings’ Senior Floating Rate Notes due 2010 at 102%, and (iii) that Charter
Holdings has called for redemption Charter Holdings’
$187 million aggregate principal amount 8.625% Senior Notes due 2009. With
the
completion of these transactions, Charter expects to have adequate liquidity
to
fund its operations and service its debt through 2008.
About
Charter Communications
Charter
Communications, Inc. is a leading broadband communications company and the
third-largest publicly traded cable operator in the United States. Charter
provides a full range of advanced broadband services, including advanced Charter
Digital® video entertainment programming, Charter High-Speed™ Internet access
service, and Charter Telephone™ services. Charter Business™ similarly provides
scalable, tailored and cost-effective broadband communications solutions to
business organizations, such as business-to-business Internet access, data
networking, video and music entertainment services and business telephone.
Charter's advertising sales and production services are sold under the Charter
Media® brand. More information about Charter can be found at
www.charter.com.
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Contact:
Mary
Jo
Moehle
314/543-2397
Cautionary
Statement Regarding Forward-Looking Statements:
This
release includes forward-looking statements within the meaning of Section 27A
of
the Securities Act of 1933, as amended (the "Securities Act") and Section 21E
of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), regarding,
among other things, our plans, strategies and prospects, both business and
financial. Charter will not undertake to revise forward-looking projections
to
reflect events after this date. Although we believe that our plans, intentions
and expectations reflected in or suggested by these forward-looking statements
are reasonable, we cannot assure you that we will achieve or realize these
plans, intentions or expectations. Forward-looking statements are inherently
subject to risks, uncertainties and assumptions. Many of the forward-looking
statements contained in this release may be identified by the use of
forward-looking words such as "believe," "expect," "anticipate," "should,"
"planned," "will," "may," "intend," "estimated," "aim," "on track," "target,"
"opportunity" and "potential," among others. Important factors that could cause
actual results to differ materially from the forward-looking statements we
make
in this release are set forth in reports or documents that we file from time
to
time with the SEC, and include, but are not limited to:
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the
availability, in general, of funds to meet interest payment obligations
under our debt and to fund our operations and necessary capital
expenditures, either through cash flows from operating activities,
further
borrowings or other sources and, in particular, our ability to be
able to
provide under the applicable debt instruments such funds (by dividend,
investment or otherwise) to the applicable obligor of such
debt;
|
| · |
our
ability to comply with all covenants in our indentures and credit
facilities, any violation of which could trigger a default of our
other
obligations under cross-default provisions;
|
| · |
our
ability to pay or refinance debt prior to or when it becomes due
and/or to
take advantage of market opportunities and market windows to refinance
that debt through new issuances, exchange offers or otherwise, including
restructuring our balance sheet and leverage
position;
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| · |
competition
from other video programming distributors, including incumbent telephone
companies, direct broadcast satellite operators, wireless broadband
providers and DSL providers;
|
| · |
unforeseen
difficulties we may encounter in our continued introduction of our
telephone services such as our ability to meet heightened customer
expectations for the reliability of voice services compared to other
services we provide and our ability to meet heightened demand for
installations and customer service;
|
| · |
our
ability to sustain and grow revenues and cash flows from operating
activities by offering video, high-speed Internet, telephone and
other
services and to maintain and grow a stable customer base, particularly
in
the face of increasingly aggressive competition from other service
providers;
|
| · |
our
ability to obtain programming at reasonable prices or to pass programming
cost increases on to our customers;
|
| · |
general
business conditions, economic uncertainty or slowdown;
and
|
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the
effects of governmental regulation, including but not limited to
local
franchise authorities, on our business.
|
All
forward-looking statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by this cautionary statement. We
are
under no duty or obligation to update any of the forward-looking statements
after the date of this release.
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