Charter Bonds Carry Few Surprises

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St. Louis -- Charter Communications, based here, launched
its $3 billion bond offering last week, coming out in line with most analysts'
expectations.

The Charter offering was done in three tiers: $600 million
in eight-year senior notes due 2007, $1.5 billion in 10-year senior notes due 2009 and
$1.475 billion in senior discount notes due 2011.

Prices for the eight-year senior notes were 8.25 percent,
priced to yield 8.295 percent, or 312.5 basis points above U.S Treasury Notes.

The 10-year senior notes were priced at 8.625 percent,
priced to yield 8.67 percent, or 350 basis points over Treasuries.

The senior discount notes were priced at 61.394 to yield
9.92 percent, or 125 basis points to the 10-year senior notes.

Standard & Poor's Corp. gave the offering a
"B-plus" rating, mainly due to Charter's relatively high debt rating of 7.9
times cash flow.

The proceeds for the offering will be used for general
corporate purposes and to pay off some of the company's debt. That includes bonds
issued about three years ago for Charter Southeast Holdings and Marcus Cable.

The older bonds will be paid in full March 17 -- the same
date that the $3 billion bond offering will close.

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