Print Page  Close Window

SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/02/1999
Entire Document
 
<PAGE>   258
                  MARCUS CABLE HOLDINGS, LLC AND SUBSIDIARIES
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
 
1998, the 11 7/8% Notes were redeemed for a gross payment of $107,668, including
accrued interest. The redemption resulted in a loss on the retirement of the
debt of $9,059.
 
     The 14 1/4% Notes, 13 1/2% Notes, 11 7/8% Debentures and Senior Credit
Facility are all unsecured and require the Company and/or its subsidiaries to
comply with various financial and other covenants, including the maintenance of
certain operating and financial ratios. These debt instruments also contain
substantial limitations on, or prohibitions of, distributions, additional
indebtedness, liens, asset sales and certain other items.
 
(9) FAIR VALUE OF FINANCIAL INSTRUMENTS
 
     The carrying and fair values of the Company's significant financial
instruments as of December 31, 1998 and 1997 are as follows:
 

<TABLE>
<CAPTION>
                                                  1998                  1997
                                           -------------------   -------------------
                                           CARRYING     FAIR     CARRYING     FAIR
                                            VALUE      VALUE      VALUE      VALUE
                                           --------    -----     --------    -----
<S>                                        <C>        <C>        <C>        <C>
Senior Credit Facility...................  $808,000   $808,000   $949,750   $949,750
13 1/2% Notes............................   383,236    418,629    336,304    381,418
14 1/4% Notes............................   241,183    279,992    213,372    258,084
11 7/8% Debentures.......................        --         --    100,000    108,500
</TABLE>

 
     The carrying amount of the Senior Credit Facility approximates fair value
as the outstanding borrowings bear interest at market rates. The fair values of
the 14 1/4% Notes, 13 1/2% Notes, and 11 7/8% Debentures, are based on quoted
market prices. The Company had interest rate swap agreements covering a notional
amount of $500,000 at December 31, 1998 and 1997. The fair value of such swap
agreements was ($5,761) at December 31, 1998.
 
     The weighted average interest pay rate for the interest rate swap
agreements was 5.7% at December 31, 1998, and 1997. Certain of these agreements
allow for optional extension by the counterparty or for automatic extension in
the event that one month LIBOR exceeds a stipulated rate on any monthly reset
date. Approximately $100,000 notional amount included in the $500,000 notional
amount described above is also modified by an interest rate cap agreement which
resets monthly.
 
     The notional amounts of the interest rate hedge agreements do not represent
amounts exchanged by the parties and, thus, are not a measure of the Company's
exposure through its use of interest rate hedge agreements. The amounts
exchanged are determined by reference to the notional amount and the other terms
of the contracts.
 
     The fair values of the interest rate hedge agreements generally reflect the
estimated amounts that the Company would receive or (pay) (excluding accrued
interest) to terminate the contracts on the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts. Dealer
quotations are available for the Company's interest rate hedge agreements.
 
     Management believes that the sellers of the interest rate hedge agreements
will be able to meet their obligations under the agreements. In addition, some
of the interest rate hedge agreements are with certain of the participating
banks under the Company's Senior Credit Facility thereby reducing the exposure
to credit loss. The Company has policies regarding the financial stability and
credit standing of the major counterparties.
 
                                      F-54