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SEC Filings

10-Q
CHARTER COMMUNICATIONS, INC. /MO/ filed this Form 10-Q on 11/03/2016
Entire Document
 

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(dollars in millions, except per share amounts and where indicated)


5.000% senior notes due February 1, 2020
1,500

 
1,624

 

 

4.125% senior notes due February 15, 2021
700

 
742

 

 

4.000% senior notes due September 1, 2021
1,000

 
1,059

 

 

5.750% sterling senior notes due June 2, 2031 (a)
810

 
879

 

 

6.550% senior debentures due May 1, 2037
1,500

 
1,693

 

 

7.300% senior debentures due July 1, 2038
1,500

 
1,797

 

 

6.750% senior debentures due June 15, 2039
1,500

 
1,731

 

 

5.875% senior debentures due November 15, 2040
1,200

 
1,259

 

 

5.500% senior debentures due September 1, 2041
1,250

 
1,258

 

 

5.250% sterling senior notes due July 15, 2042 (b)
843

 
811

 

 

4.500% senior debentures due September 15, 2042
1,250

 
1,135

 

 

Time Warner Cable Enterprises LLC:
 
 
 
 
 
 
 
8.375% senior debentures due March 15, 2023
1,000

 
1,282

 

 

8.375% senior debentures due July 15, 2033
1,000

 
1,327

 

 

Total debt
60,168

 
61,996

 
35,902

 
35,723

Less current portion:
 
 
 
 
 
 
 
5.850% senior notes due May 1, 2017
2,000

 
2,050

 

 

Long-term debt
$
58,168

 
$
59,946

 
$
35,902

 
$
35,723


(a) 
Principal amount includes £625 million valued at $810 million as of September 30, 2016 using the exchange rate at that date.
(b) 
Principal amount includes £650 million valued at $843 million as of September 30, 2016 using the exchange rate at that date.

The accreted values presented in the table above represent the principal amount of the debt less the original issue discount at the time of sale, deferred financing costs, and, (i) in regards to the Legacy TWC debt assumed, a fair value premium adjustment as a result of applying acquisition accounting plus the accretion of those amounts to the balance sheet date and (ii) in regards to the fixed-rate British pound sterling denominated notes (the “Sterling Notes”), a remeasurement of the principal amount of the debt and any premium or discount into US dollars as of the balance sheet date. See Note 10. However, the amount that is currently payable if the debt becomes immediately due is equal to the principal amount of the debt. The Company has availability under the Charter Operating credit facilities of approximately $2.8 billion as of September 30, 2016.

CCO Holdings

In February 2016, CCO Holdings and CCO Holdings Capital jointly issued $1.7 billion aggregate principal amount of 5.875% senior notes due 2024 (the “2024 Notes”) and, in April 2016, they issued $1.5 billion aggregate principal amount of 5.500% senior notes due 2026 (the “2026 Notes”) at a price of 100.075% of the aggregate principal amount. The net proceeds from both issuances were used to repurchase all of CCO Holdings’ 7.000% senior notes due 2019, 7.375% senior notes due 2020 and 6.500% senior notes due 2021 and to pay related fees and expenses and for general corporate purposes. These debt repurchases resulted in a loss on extinguishment of debt of $110 million for the nine months ended September 30, 2016.

The 2024 Notes and 2026 Notes are senior debt obligations of CCO Holdings and CCO Holdings Capital and rank equally with all other current and future unsecured, unsubordinated obligations of CCO Holdings and CCO Holdings Capital. They are structurally subordinated to all obligations of subsidiaries of CCO Holdings.

CCO Holdings may redeem some or all of the 2024 Notes and 2026 Notes at any time with a make-whole premium. Beginning in 2019 for the 2024 notes and 2021 for the 2026 notes, the optional redemption price declines to 100% of the respective series’ principal amount, plus accrued and unpaid interest, if any.

In addition, at any time prior to April 1, 2019 in regards to the 2024 Notes and May 1, 2019 in regards to the 2026 Notes, CCO Holdings may redeem up to 40% of the aggregate principal amount of the 2024 Notes and 2026 Notes at a premium plus accrued and unpaid interest to the redemption date, with the net cash proceeds of one or more equity offerings (as defined in the indenture);


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