Print Page  Close Window

SEC Filings

RENAISSANCE MEDIA GROUP LLC filed this Form 10-Q on 05/17/1999
Entire Document
<PAGE>   13

measure of performance as it is commonly used in the cable television industry
to analyze and compare cable television companies on the basis of operating
performance, leverage and liquidity. In addition, the primary debt instruments
of the Company contain certain covenants, compliance with which is measured by
computations similar to determining EBITDA. The Company's definition of EBITDA
may not be identical to similarly titled measures by other companies. The
Systems' EBITDA was $8.4 million (54.8% of revenue) for the three months ended
March 31, 1999.

         The Company expects to make substantial investments in capital to: (i)
upgrade its cable plant; (ii) build line extensions; (iii) purchase new
equipment; and (iv) acquire the equipment necessary to implement its digital,
Internet and data transmission strategy. In 1999, the Company estimates capital
expenditures will range from approximately $14 million to $17 million. However,
the actual amount and timing of the Company's capital requirements may differ
materially from the Company's estimates as a result of, among other things, the
demand for the Company's services and regulatory, technological and competitive
developments (including additional market developments and new opportunities) in
the Company's industry. During the three months ended March 31, 1999, the
Company made capital expenditures of approximately $2.4 million.

         Borrowings under the Credit Agreement bore interest at floating rates,
although the Company was required to maintain interest rate protection programs.
Media's obligations under the Credit Agreement were secured by substantially all
the assets of Media. On April 30, 1999, all outstanding indebtedness under the
Credit Agreement was repaid and the facility was terminated.

         As a result of the Charter Transaction (i.e., change of control) and in
accordance with the terms and conditions of the indenture governing the 10 %
senior discount notes due 2008 (the "Notes"), the Company will offer to
repurchase all the Notes at a redemption price of 101% of Accreted Value (as
defined in the indenture) plus accrued interest.

         The Indenture governing the 10% senior discount notes limits cash
payments by the Company to the sum of: i) the amount by which consolidated
EBITDA (as defined) exceeds 130% of consolidated interest expense (as defined)
determined on a cumulative basis, ii) capital contributions, and iii) an amount
equal to the net reduction in investments (as defined). Excess cash will be made
available to Charter Communications Operating, LLC ("CCO"), parent entity of CC
LLC, as permitted by the Indenture, including the funding of CCO's credit
facility (the "CCO Credit Agreement").

         The Company and all subsidiaries of CCO have guaranteed payment and
performance by CCO of its obligations inherent in the CCO Credit Agreement. In
addition, Group and its wholly owned subsidiaries, Renaissance (Louisiana) Media
LLC and Renaissance (Tennessee) Media LLC, and all subsidiaries of CCO have
pledged their ownership interests as collateral to the CCO Credit Agreement.


         The Company relies on computer systems, related software applications
and other control devices in operating and monitoring all major aspects of its
business, including, but not limited to, its financial systems (such as general
ledger, accounts payable, payroll and fixed asset modules), subscriber billing
systems, internal networks and telecommunications equipment. The Company also
relies, directly and indirectly, on the external systems of various independent
business enterprises, such as its suppliers and financial organizations, for the
accurate exchange of data.