ITEM 8.01 OTHER EVENTS.
Charter Communications, Inc. (the “Company”), the indirect parent company of Charter Communications Holdings, LLC, Charter Communications Holdings Capital Corporation, CCH II, LLC, CCH II Capital Corp., CCO Holdings, LLC and CCO Holdings Capital Corp., announced that two of its subsidiaries, CCH I Holdings, LLC and Charter Communications Holdings, LLC, did not make scheduled payments of interest due on January 15, 2009, on certain of their outstanding senior notes set forth in the table below. The interest payments total $73.7 million in the aggregate (as set forth in the table below).
| | | Interest Due ($ in millions) | | | Principal Amount Outstanding (as of 9/30/08, $ in millions) | |
| CCH I Holdings, LLC: | | | | | | |
| 11.125% senior notes due January 15, 2014 | | | 8.4 | | | | 151 | |
| 13.500% senior discount notes due January 15, 2014 | | | 39.2 | | | | 581 | |
| 12.125% senior discount notes due January 15, 2015 | | | 13.1 | | | | 217 | |
| | | | | | | | | |
| Charter Holdings: | | | | | | | | |
| 10.250% senior notes due January 15, 2010 | | | 0.9 | | | | 18 | |
| 11.75% senior discount notes due January 15, 2010 | | | 0.9 | | | | 16 | |
| 11.125% senior discount notes due January 15, 2011 | | | 2.6 | | | | 47 | |
| 13.500% senior discount notes due January 15, 2011 | | | 4.0 | | | | 60 | |
| 12.125% senior discount notes due January 15, 2012 | | | 4.6 | | | | 75 | |
| | | | | | | | | |
| | | | 73.7 | | | | 1,165 | |
If such interest payments are not made within the 30-day grace period provided by each of the governing Indentures, an event of default would occur under the indentures governing the notes, permitting holders of at least 25% in principal amount of any outstanding series of notes on which the interest payment was not made to declare the full amount of the applicable notes immediately due and payable.
An event of default on the notes, without such an acceleration of amounts due under the notes, would not trigger cross-defaults on any of the other debt of the subsidiaries of the Company. If payment is not made with respect to any series of notes within the 30-day grace period, and the notes are accelerated, all amounts due with respect to such affected notes become immediately due and payable. If notes issued by the Company or any of its subsidiaries accelerate, and such notes, together with the amount of any other notes of the Company or any of its subsidiaries that accelerate, represent $100 million or more in principal amount, events of default would occur under other debt instruments of the Company or certain of its subsidiaries which could lead to the acceleration of indebtedness under such documents.
On December 12, 2008, the Company announced that it was initiating discussions with its bondholders regarding financial alternatives to improve the Company’s balance sheet. As of January 13, 2009, the Company had cash on hand and cash equivalents in excess of $900 million, which is available to pay operating costs and expenses.
A copy of the press release announcing an update on interest payments is attached as Exhibit 99.1.
