Charter Communications subsidiaries get needed consents for 8¾%, 8 3/8% notes, lift tender payout

By Susanna Moon

Chicago, April 28 - Charter Communications, Inc. said it accepted for purchase the early tenders for $740.8 million of Charter Communications Operating LLC's $770 million of 8 3/8% senior second-lien notes due 2014 and $677.3 million principal amount of CCO Holdings, LLC's $800 million of 8¾% senior notes due 2013.

Charter said it has received consents from holders of 92.6% of the 8¾% notes and 87.9% of the 8 3/8% notes as of 5 p.m. ET on April 27, the consent payment deadline.

As a result, the company received the consents needed to amend the notes to eliminate substantially all of the restrictive covenants and some events of default and eliminate or modify related provisions. They were seeking consents from holders of a majority of the notes.

Charter Communications also said it is revising the terms of the tender offers so that holders who tender their notes by the end of the tender offer at 11:59 p.m. ET on May 12 will receive a payment of $1,029.17 for each $1,000 principal amount of 8¾% notes and a payment of $1,027.92 for each $1,000 principal amount of 8 3/8% notes.

For each $1,000 principal amount, the companies previously said it would pay $1,032.50 for the 8¾% notes and $1,031.25 for the 8 3/8% notes, both including a $30.00 consent payment to those who tendered by the early deadline.

Holders will also receive accrued interest.

The offers began on April 14.

Charter plans to fund the offers with the proceeds from a planned private placement of new senior notes to be issued by CCO Holdings, borrowings under its senior secured credit facility or cash on hand, or a combination.

The companies also intend to redeem any remaining securities following the offer.

Credit Suisse Securities (USA) LLC (800 820-1653 or call collect 212 325-5912) and Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106) are the dealer managers. The information agent is Global Bondholder Services Corp. (212 430-3774 or 866 389-1500).

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

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