Attached files
Exhibit
99.2
Charter
Communications Completes Financial Restructuring and Emerges From Chapter
11
Emerges
as a Stronger Company with a Significantly Improved Capital
Structure
St. Louis, Missouri – November
30, 2009 - Charter Communications, Inc. (along with its subsidiaries, the
“Company” or “Charter”) today announced that it has successfully completed its
financial restructuring, which significantly improves the Company’s capital
structure by reducing debt by approximately 40 percent, or approximately $8
billion.
“This
successful financial restructuring is a significant accomplishment and makes
Charter a stronger company for the benefit of our customers, vendors, employees
and the communities we serve,” said Neil Smit, President and Chief Executive
Officer. “We have restructured our balance sheet without losing sight
of serving our customers and maintaining our business
relationships. Charter will remain focused on further enhancing the
customer experience and is positioned to generate free cash flow. On
behalf of the management team, I would like to thank the more than 16,000
Charter employees across the country for their hard work and dedication
throughout this process.”
Charter
has emerged from Chapter 11 under its pre-arranged Joint Plan of Reorganization
(the “Pre-Arranged Plan”), which was confirmed by the United States Bankruptcy
Court for the Southern District of New York on November 17, 2009.
As
previously announced, Charter is positioned to generate positive free cash flow
through the reduction of more than $830 million in annual interest
expense. The current debt of Company subsidiaries CCO Holdings, LLC
and Charter Communications Operating, LLC will be reinstated under pre-existing
pricing and maturity dates. Charter will receive approximately $1.6
billion in proceeds from an equity rights offering to support the overall
refinancing and the reduction of approximately $8 billion of debt. In
addition, Charter will exchange existing CCH II notes for approximately $1.7
billion of new 13.5% CCH II notes due 2016. Existing shares of the
Company’s common stock have been cancelled. Paul Allen will continue
as an investor, and will retain the largest voting interest in the
Company. The Company intends to apply for listing of its new common
stock issued in accordance
with the
Plan on The NASDAQ Stock Market LLC not earlier than 45 days after
emergence. Charter filed its Pre-Arranged Plan and Chapter 11
petitions on March 27, 2009.
About
Charter
Charter
Communications, Inc. is a leading broadband communications company and the
fourth-largest cable operator in the United States. Charter provides a full
range of advanced broadband services, including advanced Charter Digital Cable®
video entertainment programming, Charter High-Speed® Internet access, and
Charter Telephone®. Charter Business™ similarly provides scalable, tailored, and
cost-effective broadband communications solutions to business organizations,
such as business-to-business Internet access, data networking, video and music
entertainment services, and business telephone. Charter's advertising sales and
production services are sold under the Charter Media® brand. More information
about Charter can be found at www.charter.com.
Cautionary
Statement Regarding Forward-Looking Statements:
This
release includes forward-looking statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial. Although we believe that
our plans, intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, we cannot assure you that we will
achieve or realize these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and assumptions,
including, without limitation, the factors described under "Risk Factors" from
time to time in our filings with the Securities and Exchange Commission ("SEC").
Many of the forward-looking statements contained in this release may be
identified by the use of forward-looking words such as "believe," "expect,"
"anticipate," "should," "planned," "positioned," "will," "may," "intend,"
"estimated," "aim," "on track," "target," "opportunity" and "potential," among
others. Important factors that could cause actual results to differ materially
from the forward-looking statements we make in this release are set forth in
other reports or documents that we file from time to time with the SEC,
including our quarterly reports on Form 10-Q filed in 2009 and our most recent
annual report on Form 10-K and include, but are not limited to:
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the
availability and access, in general, of funds to meet our debt obligations
and to fund our operations and necessary capital expenditures, either
through cash on hand, cash flows from operating activities, further
borrowings or other sources and, in particular, our ability to fund debt
obligations (by dividend, investment or otherwise) to the applicable
obligor of such debt;
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our
ability to comply with all covenants in our indentures and credit
facilities, any violation of which, if not cured in a timely manner, could
trigger a default of our other obligations under cross-default
provisions;
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our
ability to repay debt prior to or when it becomes due and/or successfully
access the capital or credit markets to refinance that debt through new
issuances, exchange offers or otherwise, especially given recent
volatility and disruption in the capital and credit
markets;
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the
impact of competition from other distributors, including but not limited
to incumbent telephone companies, direct broadcast satellite operators,
wireless broadband providers, and digital subscriber line ("DSL")
providers;
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difficulties
in growing and operating our telephone services, while adequately meeting
customer expectations for the reliability of voice
services;
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our
ability to adequately meet demand for installations and customer
service;
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our
ability to sustain and grow revenues and cash flows from operating
activities by offering video, high-speed Internet, telephone and other
services, and to maintain and grow our customer base, particularly in the
face of increasingly aggressive competition and the weak economic
conditions in the United States;
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our
ability to obtain programming at
reasonable prices or to adequately raise prices to offset the effects of
higher programming costs;
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general
business conditions, economic uncertainty or downturn, including the
recent volatility and disruption in the capital and credit markets and the
significant downturn in the housing sector and overall economy;
and
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the
effects of governmental regulation on our
business.
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All
forward-looking statements attributable to us or any person acting on our behalf
are expressly qualified in their entirety by this cautionary statement. We are
under no duty or obligation to update any of the forward-looking statements
after the date of this release.
Contacts:
Media:
Anita
Lamont, 314-543-2215
Charter
Communications, Inc.
Andy
Brimmer
Joele
Frank, Wilkinson Brimmer Katcher
212-355-4449
or
Analysts:
Mary Jo
Moehle, 314-543-2397
Charter
Communications, Inc.