Charter obtains $600 million bridge loan

New York, Oct. 19 - Charter Communications, Inc. said its CCO Holdings, LLC and CCO Holdings Capital Corp. subsidiaries entered into a new $600 million senior bridge loan.

The St. Louis-based cable television company can draw on the loan beginning Jan. 2, 2006 and the facility matures on Sept. 29, 2006.

JPMorgan Chase Bank, NA, Credit Suisse, Cayman Islands Branch and Deutsche Bank AG Cayman Islands Branch are the lenders and JPMorgan Chase Bank is administrative agent. J.P. Morgan Securities Inc., Credit Suisse and Cayman Islands are joint lead arrangers and joint bookrunners and Deutsche Bank Securities Inc. is documentation agent.

Interest is at Libor plus 450 basis points, stepping up by 25 bps six months after the first borrowing, by a further 25 bps three and six months after that and by a further 62.5 bps after an additional three and six months.

The commitment will be reduced by the net proceeds of asset sales above $75 million unless the proceeds are used to repay loans. For asset sales not meeting the definition in the loan documentation, the threshold is $200 million.

Charter will also be required to prepay loans with the proceeds from equity or debt sales.

Covenants and events of default match those for CCH I LLC's senior secured notes, according to an 8-K filing with the Securities and Exchange Commission.

One year after the first borrowing, the lenders may exchange the loan for notes. After a majority of the loan or 18 months, the entire loan will be converted to notes.

The exchange notes will mature six years after the first borrowing and will carry interest at the same rate as the loan. They have similar redemption provisions as the loan, plus a requirement to make a change-of-control offer at 101% of par.

If the exchange notes are held by someone other than the initial lender, they will be non-callable for three years; otherwise they will be callable at any time.

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