Charter tenders for many senior, discount and convertible notes

New York, July 11 - Charter Communications, Inc. (Ca/CCC+) said that along with its indirect subsidiary, Charter Communications Holdings, LLC, (collectively, "Charter") it will tender for a portion of the company's outstanding senior notes, senior discount notes and convertible senior notes.

Charter, a St. Louis-based cable-TV systems operator, said that its multiple tender offers will expire at 8 a.m. ET on Aug. 8, subject to possible extension.

The company is offering to purchase a total of $1.391 billion principal amount at maturity of its outstanding public debt, consisting of $285 million principal amount of senior and senior discount notes issued by Charter Communications Holdings and $1.106 billion principal amount of convertible notes issued by Charter Communications Inc.

Charter Communications Holdings is offering to purchase $61 million of its $1.5 billion of outstanding 8 5/8% senior notes due 2009 for a tender offer consideration of $810 per $1,000 principal amount of notes accepted for purchase.

It is offering to purchase $28 million of its $675 million of outstanding 10% senior notes due 2009 for $850 per $1,000 principal amount.

It is offering to purchase $37 million of its $900 million of outstanding 10¾% senior notes due 2009 for $860 per $1,000 principal amount.

It is offering to purchase $29 million of its $700 million of outstanding 9 5/8% senior notes due 2009 for $820 per $1,000 principal amount.

It is offering to purchase $13 million of its $325 million of outstanding 10¼% senior notes due 2010 for $840 per $1,000 principal amount.

It is offering to purchase $21 million of its $500 million of outstanding 11 1/8% senior notes due 2011 for $850 per $1,000 principal amount.

It is offering to purchase $36 million of its $875 million of outstanding 10% senior notes due 2011 for $810 per $1,000 principal amount.

And it is offering to purchase $60 million principal amount at maturity of its $1.475 billion of outstanding 9.92% senior discount notes due 2009 for $730 per $1,000 principal amount.

Charter Communications Inc. is offering to purchase $506 million of its $632.5 million of outstanding 4¾% convertible senior notes due 2006, for $800 per $1,000 principal amount.

And it is offering to purchase 600 million of its $750 million of outstanding 5¾% convertible senior notes due 2005, for $825 per $1,000 principal amount.

All holders whose notes are accepted by Charter for purchase under the respective tender offer (except for the 9.92% discount notes) will receive unpaid and accrued interest up to the payment date in addition to the respective tender offer consideration.

Charter announced a maximum principal purchase amount of $1.775 billion, but did not elaborate on this figure.

It also specified that it is not offering to purchase any of its 8¼% senior notes due 2007, 11¾% senior discount notes due 2010, 11¾% senior discount notes due 2011, 13½% senior discount notes due 2011 and 12 1/8% senior discount notes due 2012.

The company intends to fund its tender offers through a separately announced $1.7 billion financing though its subsidiaries (Charter said that it will sell $1.7 billion of new notes and will use $500 million of the proceeds to repay credit facility debt and the remainder for the note tender offers).

Citigroup Global Markets Inc. is the dealer manager for both the Charter Communications Inc. and the Charter Communications Holdings tender offers (call the Liability Management Desk at 800 558-3745). D.F. King & Co., Inc. is the information agent (call 800 549-6650). The Bank of New York is the depositary agent in connection with the tender offers.

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