Charter to spend up to $1 billion to buy back three series of notes

By Susanna Moon

Chicago, Nov. 30 - Charter Communications, Inc. said its subsidiaries Charter Communications Operating, LLC and CCH II, LLC began tender offers for three series of notes.

Covered by the offers are

• Any and all of Charter Operating's 8% senior second-lien notes due 2012;

• An amount of Charter Operating's 10 7/8% senior second-lien notes due 2014 up to the maximum purchase price, $1 billion, less the amount used to purchase the 8% notes; and

• An amount of CCH II's 13½% senior notes due 2016 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 total payment will be $1,025.00 for the 8% notes, $1,073.75 for the 10 7/8% notes and $1,160.00 for the 13½% notes, which includes a $25.00 premium for notes tendered by the early tender deadline, 5 p.m. ET on Dec. 13.

Holders who tender their notes after the early tender deadline will be ineligible to receive the $25.00 premium.

The company also will pay accrued interest up to but not including the payment date.

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

Tendered notes may be withdrawn at any time before 5 p.m. ET on Dec. 13.

Payment for notes tendered by the early tender deadline will be made promptly following the early tender deadline, in the case of 8% notes tendered prior to the early tender deadline, or the expiration date, in the case of 8% notes tendered after the early tender deadline and in the case of the 10 7/8% notes and the 13½% notes, according to a Charter press release.

Funding for the offer will come from a public offering of $750 million senior notes due 2020 by the company's subsidiaries, CCO Holdings, LLC and CCO Holdings Capital Corp. Charter also plans to use drawdowns under its revolving credit facility to finance the tender offers.

The completion of the tender offers is conditioned on the completion of the proposed financing.

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

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

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