Charter extends tender offers for three series of notes, raises size

New York, Feb. 1 - Charter Communications, Inc. subsidiaries Charter Communications Operating, LLC and CCH II, LLC extended their tender offers for three series of notes, increased the amount of notes they may buy and waived a sub-limit.

The tenders will now end at 11:59 p.m. ET on Feb. 14, pushed back from 11:59 p.m. ET on Feb. 8.

Charter raised the maximum purchase price to $1.01 billion from $843 million previously. It also waived the sublimit of $250 million for CCH II's 13½% senior notes due 2016.

The company noted that Charter Communications Operations had previously purchased $300 million of its $500,341,000 of 8% senior second-lien notes due 2012 and $294 million of its $311,561,000 of 10 7/8% senior second-lien notes due 2014, paying $619 million plus accrued interest.

No further notes from those series had been tendered as of Feb. 1.

As of Feb. 1, $334 million of the CCH II 13½% notes had been tendered, unchanged from the last announcement.

At its previous announcement on Jan. 25, Charter released the preliminary results of the offer.

Charter Communications Operations said it received and accepted tenders from holders of $300 million of its $500,341,000 of 8% senior second-lien notes due 2012 and $294 million of its $311,561,000 of 10 7/8% senior second-lien notes due 2014.

CCH II obtained tenders from holders of $334 million of its $1,480,367,024 of outstanding 13½% senior notes due 2016.

The Charter Operations' notes have priority over the CCH II notes, which have a purchase cap of $250 million. That cap was now been removed.

As previously noted, Charter Operating is also seeking consents from a majority of the holders of the 8% notes and 10 7/8% notes to remove the covenants under the notes, and it has received the necessary consents.

For each $1,000 principal amount, the total price will be $1,019.40 for the 8% notes, $1,068.35 for the 10 7/8% notes and $1,155.00 for the 13½% notes tendered by the early deadline at 5 p.m. ET on Jan. 25. The total price includes an early tender premium of $25.00 per $1,000 of notes.

Holders who tender after the early date will not receive the early tender premium.

The offers were set to run until 11:59 p.m. ET on Feb. 8, a deadline now extended. They began on Jan. 11.

The offers are conditioned on financing. CCO Holdings, LLC and CCO Holdings Capital Corp. plan to publicly offer $750 million principal amount of senior notes due 2022 to help fund the offers, along with drawdowns under Charter's revolving credit facility.

Credit Suisse Securities (USA) LLC (800 820-1653 or collect 212 325-5912), Citigroup Global Markets Inc. (800 558-3745 or collect 212 723-6106) and UBS Securities LLC (888 719-4210) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 389-1500 or collect 212 430-3774) was the information agent.

Charter is a St. Louis-based cable operator and broadband communications company.

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