Charter Subsidiaries Exchanging Notes

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Charter Communications announced an exchange offer and a notes offering Friday.

Wholly owned subsidiary CCHC LLC and CCHC's wholly owned subsidiary, CCH II LLC, filed a registration statement with the Securities and Exchange Commission relating to a proposed exchange offer for up to $450 million of its $862.5 million principal amount outstanding 5.875% convertible senior notes due 2009.

The company said the purpose of the exchange offer is to improve Charter's financial flexibility by extending debt maturities and reducing overall indebtedness.

CCHC and CCH II are offering up to $188 million in cash, 45 million shares of class-A Charter common stock and $146.3 million principal amount of new CCH II notes in exchange for up to $450 million aggregate principal amount of convertible notes.

Charter also announced that wholly owned indirect subsidiaries CCH II and CCH I LLC are commencing private offers to issue up to $875 million of new notes in exchange for up to any and all of each series of outstanding notes of Charter Communications Holdings LLC.

CCH II is offering to issue up to $200 million of new 10.25% senior notes due 2013 and CCH I is offering to issue up to $675 million of 11% senior secured notes due 2015 in exchange for up to any and all of each series of Charter Holdings' notes with maturities in 2009 and 2010 and in 2011 and 2012.

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