RENAISSANCE MEDIA GROUP LLC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998
(ALL DOLLAR AMOUNTS IN 000'S EXCEPT WHERE INDICATED)
7. RELATED PARTY TRANSACTIONS
(a) Transactions with Morgan Stanley Entities
In connection with the Acquisition, Media entered into the Credit
Agreement with Morgan Stanley Senior Funding and Morgan Stanley & Co.
Incorporated acted as the Placement Agent for the Notes. In connection with
these services the Morgan Stanley Entities received customary fees and expense
(b) Transaction with Time Warner and Related Parties
In connection with the Acquisition, Media entered into an agreement
with Time Warner, pursuant to which Time Warner manages the Company's
programming in exchange for providing the Company access to certain Time Warner
For the period from April 9, 1998 to June 30, 1998 the Company paid
Time Warner approximately $1,300 (including service fees of approximately $6 for
programming services under this agreement). In addition, the Company has
incurred programming costs of approximately $1,000 for programming services
owned directly or indirectly by Time Warner entities for the period from April
9, 1998 to June 30, 1998.
(c) Transactions with Management
Prior to the consummation of the Acquisition described in Note 4,
Media paid fees to six senior managers of the company who are investors in the
company (the "Management Investors") for services rendered relating to the
Acquisition and the Credit Agreement. These fees totaled $287 and were recorded
as transaction and financing costs.
(d) Due to Management Investors
Prior to the formation of the Company, the Management Investors
advanced $1,000 to Holdings, which was used primarily for working capital
purposes. Upon formation of the Company, Holdings contributed certain assets
and liabilities to Group and the $1,000 advance from the Management Investors
was recorded as paid in capital.