Charter Communications Announces Agreement to Sell Systems Serving Approximately 43,700 Customers; Subsidiaries of Orange Broadband Holding Company, LLC to Purchase Charter Assets
ST. LOUIS--(BUSINESS WIRE)--March 22, 2006--Charter
Communications, Inc. (Nasdaq: CHTR) (the "Company" or "Charter") today
announced the signing of a definitive agreement to sell certain cable
television systems serving a total of approximately 69,400 revenue
generating units, including 43,700 analog video customers, 12,300
digital video and 13,400 high-speed Internet customers in northern and
southeastern Nevada, Colorado, New Mexico and Utah to subsidiaries of
Orange Broadband Holding Company, LLC. Terms of the agreement were not
"As with our recently announced sale agreements to Cebridge and
New Wave Communications, this transaction is consistent with our
strategy to divest geographically non-strategic assets," said Charter
President and CEO Neil Smit. "As we've said previously, we will
continue to assess opportunities to optimize our portfolio to enhance
overall operating efficiency."
Proceeds from this sale will also enhance liquidity and will be
used to pay down, but not permanently reduce, amounts outstanding
under Charter's revolver. The closing is expected to occur in the
third quarter of 2006. Daniels & Associates and JPMorgan Securities
Inc. are serving as advisors to Charter for this transaction.
About Charter Communications
Charter Communications, Inc., a broadband communications company,
provides a full range of advanced broadband services to the home,
including cable television on an advanced digital video programming
platform via Charter Digital(TM), Charter High-Speed(TM) Internet
service and Charter Telephone(TM). Charter Business(TM) provides
scalable, tailored and cost-effective broadband communications
solutions to organizations of all sizes through business-to-business
Internet, data networking, video and music services. Advertising sales
and production services are sold under the Charter Media(R) brand.
More information about Charter can be found at www.charter.com.
About Orange Broadband
Orange Broadband was formed by M/C Venture Partners, a Boston,
MA-based private equity firm, Oak Investment Partners, a Palo Alto,
CA-based private equity firm and Columbia Capital, an Arlington,
VA-based private equity firm, to acquire and operate cable television
systems offering video and high-speed data services to residential and
commercial customers. Headquartered in Charlotte, NC, Orange
Broadband's management team includes seasoned executives with over 60
years of experience in operating, financing, engineering,
constructing, selling, marketing, and developing cable television,
broadband, telecommunications, and data services.
This release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section 21E of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), 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. 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," "will," "may," "intend,"
"estimated" 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
reports or documents that we file from time to time with the SEC.
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.
CONTACT: Charter Communications, Inc.
Anita Lamont, 314-543-2215
Mary Jo Moehle, 314-543-2397