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S-4/A
CHARTER COMMUNICATIONS HOLDINGS CAPITAL CORP filed this Form S-4/A on 08/27/1999
Entire Document
 
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     The table set forth below summarizes the fair values and contract terms of
financial instruments subject to interest rate risk maintained by us as of
December 31, 1998 (dollars in thousands):
 
   

<TABLE>
<CAPTION>
                                          EXPECTED MATURITY DATE                                            FAIR VALUE AT
                           ----------------------------------------------------                             DECEMBER 31,
                             1999       2000       2001       2002       2003     THEREAFTER     TOTAL          1998
                           --------   --------   --------   --------   --------   ----------   ----------   -------------
<S>                        <C>        <C>        <C>        <C>        <C>        <C>          <C>          <C>
DEBT
Fixed Rate...............        --         --         --         --         --   $  271,799   $  271,799    $  271,799
 Average Interest Rate...        --         --         --         --         --         13.5%        13.5%
Variable Rate............  $ 10,450   $ 21,495   $ 42,700   $113,588   $157,250   $1,381,038   $1,726,521    $1,726,521
 Average Interest Rate...       6.0%       6.1%       6.3%       6.5%       7.2%         7.6%         7.2%
INTEREST RATE INSTRUMENTS
Variable to Fixed
 Swaps...................  $130,000   $255,000   $180,000   $320,000   $370,000   $  250,000   $1,505,000    $ (28,977)
 Average Pay Rate........       4.9%       6.0%       5.8%       5.5%       5.6%         5.6%         5.6%
 Average Receive Rate....       5.0%       5.0%       5.2%       5.2%       5.4%         5.4%         5.2%
Caps.....................  $ 15,000         --         --         --         --           --   $   15,000            --
 Average Cap Rate........       8.5%        --         --         --         --           --          8.5%
Collar...................        --   $195,000   $ 85,000   $ 30,000         --           --   $  310,000    $  (4,174)
 Average Cap Rate........        --        7.0%       6.5%       6.5%        --           --          6.8%
 Average Floor Rate......        --        5.0%       5.1%       5.2%        --           --          5.0%
</TABLE>

    
 
   
     The notional amounts of interest rate instruments, as presented in the
above table, are used to measure interest to be paid or received and do not
represent the amount of exposure to credit loss. The estimated fair value
approximates the proceeds (costs) to settle the outstanding contracts. Interest
rates on variable debt are estimated using the average implied forward LIBOR
rates for the year of maturity based on the yield curve in effect at December
31, 1998. While swaps, caps and collars represent an integral part of our
interest rate risk management program, their incremental effect on interest
expense for the years ended December 31, 1998, 1997, and 1996 was not
significant.
    
 
   
     In March 1999, substantially all existing long-term debt, excluding
borrowings of our previous credit facilities, was extinguished, and all previous
credit facilities were refinanced with the credit facilities. The following
table sets forth the fair values and contract terms of the long-term debt
maintained by us as of June 30, 1999 (dollars in thousands):
    
 
   

<TABLE>
<CAPTION>
                                          EXPECTED MATURITY DATE                                           FAIR VALUE AT
                            --------------------------------------------------                               JUNE 30,
                              1999       2000       2001      2002      2003     THEREAFTER     TOTAL          1999
                            --------   --------   --------   -------   -------   ----------   ----------   -------------
<S>                         <C>        <C>        <C>        <C>       <C>       <C>          <C>          <C>
DEBT
Fixed Rate................        --         --         --        --        --   $3,109,310   $3,109,310   $  3,010,000
 Average Interest Rate....        --         --         --        --        --          9.0%         9.0%
Variable Rate.............        --         --         --   $25,313   $39,375   $1,960,312   $2,025,000   $  2,025,000
 Average Interest Rate....        --         --         --       6.5%      6.5%         6.8%         6.8%
</TABLE>

    
 
   
     Interest rates on variable debt are estimated using the average implied
forward LIBOR rates for the year of maturity based on the yield curve in effect
at June 30, 1998.
    
 
YEAR 2000 ISSUES
 
     GENERAL.  Many existing computer systems and applications, and other
control devices and embedded computer chips use only two digits, rather than
four, to identify a year in the date field, failing to consider the impact of
the upcoming change in the century. Computer chips are the physical structure
upon which integrated circuits are fabricated as components of systems, such as
telephone systems, computers and memory systems. As a result, such systems,
applications, devices, and chips could create erroneous results or might fail
altogether unless corrected to properly interpret data related to the year 2000
and beyond. These errors and failures may result, not only from a date
recognition problem in the particular part of a system failing, but may also
result as systems, applications,
 
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