Charter subsidiaries get tenders for $1.31 billion of notes so far

By Angela McDaniels

Tacoma, Wash., Dec. 14 - Charter Communications, Inc. said its subsidiaries Charter Communications Operating, LLC and CCH II, LLC had received tenders for $1,309,000,000 of notes as of 5 p.m. ET on Dec. 13, which was the early tender date in a tender offer that began Nov. 30.

Specifically, holders had tendered $407 million of Charter Operating's 8% senior second-lien notes due 2012, $234 million of Charter Operating's 10 7/8% senior second-lien notes due 2014 and $668 million of CCH's 13½% senior notes due 2016.

The 8% notes tendered by the early tender date were accepted for purchase on Dec. 14.

As previously reported, the maximum purchase price for the offer is $1 billion. The subsidiaries offered to purchase

• Any and all of Charter Operating's $907 million of 8% notes;

• An amount of Charter Operating's $545,896,000 of 10 7/8% notes up to the maximum purchase price less the amount used to purchase the 8% notes; and

• An amount of CCH II's $1,766,207,000 of 13½% notes up to the maximum purchase price less the amount used to purchase the 8% notes and 10 7/8% notes.

For each $1,000 principal amount, the purchase price is $1,025.00 for the 8% notes, $1,073.75 for the 10 7/8% notes and $1,160.00 for the 13½% notes. These prices include a $25.00 premium for notes tendered by the early tender date.

The company will also pay accrued interest up to but excluding the applicable payment date.

The tender offer will end at 11:59 p.m. ET on Dec. 28.

The offer will be funded with drawdowns under Charter's revolving credit facility and the proceeds of the $750 million of 7 3/8% senior notes due 2020 priced by subsidiaries CCO Holdings, LLC and CCO Holdings Capital Corp. on Nov. 30.

Bank of America Merrill Lynch (800 292-0070 or 646 855-3401), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-5912) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 389-1500 or 212 430-3774) is the information agent.

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

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