ST. LOUIS--(BUSINESS WIRE)--Nov. 22, 2004--Charter Communications, Inc. ("Charter") (Nasdaq:CHTR) today announced the closing of its issuance of approximately $862.5 million original principal amount of Convertible Senior Notes due 2009. The offering was first announced in a press release November 15, 2004. The issuance includes approximately $112.5 million original principal amount of such notes issued pursuant to an over-allotment option granted to the initial purchasers in the offering.
The notes have an annual interest rate of 5.875%, payable semi-annually, and will be convertible into 413.2231 shares of our Class A common stock per $1,000 original purchase amount of notes, which represents an initial conversion price of approximately $2.42 per share.
Charter has agreed to use a portion of the net proceeds from the sale of the notes to purchase a portfolio of U.S. Treasury securities as security for certain interest payments on the new notes and to redeem Charter's $588 million outstanding 5.75% Convertible Senior Notes due October 2005. Charter expects to use the remainder for general corporate purposes. The redemption is expected to be completed within approximately 30 to 60 days.
The notes were sold in a private placement and are expected to be resold by the initial purchasers to qualified institutional buyers in reliance on Rule 144A. The notes and the Class A common stock issuable upon conversion of the notes have not been registered under the Securities Act of 1933, as amended ("the Securities Act"), and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes or the underlying shares, nor shall there be any sale of the notes or the underlying shares in any state in which such offer, solicitation or sale would be unlawful.
About Charter Communications
Charter Communications, Inc., a broadband communications company, provides a full range of advanced broadband services to the home, including cable television on an advanced digital video programming platform via Charter Digital(TM) and Charter High-Speed(TM) Internet service. Charter also provides business-to-business video, data and Internet protocol (IP) solutions through Charter Business(TM). Advertising sales and production services are sold under the Charter Media(R) brand. More information about Charter can be found at www.charter.com.
Cautionary Statement Regarding Forward-Looking Statements:
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this release are set forth in reports or documents that we file from time to time with the SEC.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this release.
CONTACT: Charter Communications, Inc. Dave Andersen, 314/543-2213 or Mary Jo Moehle, 314/543-2397 www.charter.com SOURCE: Charter Communications, Inc.