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SEC Filings

424B3
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form 424B3 on 09/02/1999
Entire Document
 
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                  MARCUS CABLE HOLDINGS, LLC AND SUBSIDIARIES
 
           NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
                                  (UNAUDITED)
                             (DOLLARS IN THOUSANDS)
 
$2,400 is to be paid by April 30, 1999 and an additional $400 in stay-on bonuses
will be recorded as compensation in 1999 as the related services are provided.
 
INTERIM FINANCIAL INFORMATION
 
     The accompanying financial statements are unaudited; however, in the
opinion of management, such statements include all adjustments necessary for a
fair presentation of the results for the periods presented. The interim
financial statements should be read in conjunction with the financial statements
and notes thereto as of and for the period ended December 31, 1998. Interim
results are not necessarily indicative of results for a full year.
 
2.  ACQUISITIONS AND DISPOSITIONS
 
     On April 1, 1998, the Company completed the acquisition of the Mountain
Brook and Shelby Cable System form Mountain Brook and Shelby Cable for an
aggregate purchase price of $57,500. The communities served by this system are
adjacent to the Company's existing systems in the suburban Birmingham, Alabama
area. As of the date of the acquisition, this system served approximately 23,000
basic customers. The excess of the cost of properties acquired over the amounts
assigned to net tangible assets and noncompetition agreements as of the date of
acquisition was approximately $44,603 and is included in franchises.
 
     Additionally, in 1998, the Company completed the sale of certain cable
television systems for an aggregate net sales price of $401,432, resulting in a
total gain of $201,278. No gains or losses were recognized on the sale of the
cable television systems divested after the Vulcan Acquisition as such amounts
are considered to be an adjustment of the purchase price allocation as these
systems were designated as assets to be sold at the date of the Vulcan
Acquisition.
 
3.  LONG-TERM DEBT:
 
     In March 1999, concurrent with the issuance of Senior Notes and Senior
Discount Notes, the combined company (Charter and the Company) extinguished all
long-term debt, excluding borrowings of Charter and the Company under their
respective credit agreements, and refinanced all existing credit agreements at
various subsidiaries of the Company and Charter with a new credit agreement
entered into by a wholly owned subsidiary of the combined company. The excess of
the amount paid over the carrying value of the Company's long-term debt was
recorded as Extraordinary item -- loss on early extinguishment of debt in the
accompanying statement of operations
 
4.  RELATED-PARTY TRANSACTIONS:
 
     The Company and Charter entered into a management agreement on October 6,
1998 whereby Charter began to manage the day-to-day operations of the Company.
In consideration for the management consulting services provided by Charter, the
Company
 
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