-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MZ4OMqNEKz14LPO4XGeNVPWRvSm8mboKnQP6S5MO9CbzwzbV4XcKqyw3QafW78AK 3MTH2G+g2JhBuJ5sVaMQJw== 0000950144-01-002914.txt : 20010224 0000950144-01-002914.hdr.sgml : 20010224 ACCESSION NUMBER: 0000950144-01-002914 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010213 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010220 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COX COMMUNICATIONS INC /DE/ CENTRAL INDEX KEY: 0000025305 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 582112288 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06590 FILM NUMBER: 1549622 BUSINESS ADDRESS: STREET 1: 1400 LAKE HEARN DR NE CITY: ATLANTA STATE: GA ZIP: 30319 BUSINESS PHONE: 4048435000 MAIL ADDRESS: STREET 1: 1400 LAKE HEARN DRIVE CITY: ATLANTA STATE: GA ZIP: 30319 FORMER COMPANY: FORMER CONFORMED NAME: COX COMMUNICATIONS INC/DE DATE OF NAME CHANGE: 19941123 FORMER COMPANY: FORMER CONFORMED NAME: COX CABLE COMMUNICATIONS INC DATE OF NAME CHANGE: 19940614 8-K 1 g67163e8-k.txt COX COMMUNICATIONS, INC. 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 13, 2001 Cox Communications, Inc. --------------------------- (Exact name of registrant as specified in its charter) Delaware --------------------------- (State or other jurisdiction of incorporation or organization 1-06590 58-2112288 ---------- ------------ (Commission File Number) (I.R.S. Employer Identification Number) 1400 Lake Hearn Drive Atlanta, Georgia 30319 --------------------------------------- ------------ (Address of principal executive offices) (Zip Code) (404) 843-5000 --------------------------- (Registrant's telephone number, including area code) 2 ITEM 5. OTHER EVENTS. On February 13, 2001, Cox Communications, Inc. ("Cox") issued a press release announcing a proposed private offering of its convertible senior notes. A copy of the press release is being filed with this report as Exhibit 99.1. On February 15, 2001, Cox agreed to sell $685 million aggregate principal amount at maturity (or $793 million aggregate principal amount at maturity if the initial purchasers exercise their over-allotment option in full) of Convertible Senior Notes due 2021. Each note will be convertible into 11.8135 shares of Cox's Class A common stock and will mature on February 23, 2021. The issue price per note will be $695.03 per note, or 69.503% of the principal amount at maturity, and interest on the notes at a rate of .348% per year on the principal amount at maturity will be payable semi-annually. The rate of cash interest and accrual of original issue discount represent a yield to maturity of 2.25% per year. Cox expects to consummate this offering of convertible notes on February 23, 2001. In connection with the offering, Cox is providing the following updated information with respect to legal proceedings: Cox and certain subsidiaries are defendants in two putative subscriber class action suits in state courts in Louisiana and Texas initiated between October 17, 1997 and December 17, 1998. The suits challenge the propriety of late fees charged by the subsidiaries to customers who fail to pay for services in a timely manner. The suits seek injunctive relief and various formulations of damages under certain claimed causes of action under various bodies of state law. These actions are in various stages of defense. The actions are being defended vigorously. The outcome of these matters cannot be predicted at this time. Five similar suits that had been pending in Nevada, Indiana, Arizona and Florida have been settled and dismissed; one similar suit that had been pending in Nebraska was dismissed with prejudice. On November 10, 1999, Fred and Roberta Lipschutz, Arthur Simon and John Galley III, on behalf of themselves and all persons similarly situated, filed a putative class action suit against Cox and thirteen other defendants in the United States District Court for the Central District of California. The action alleges that a putative class defined as all persons who since November 10, 1995, have purchased broadband Internet data transmission services from a "cable company defendant" has been injured because alleged agreements among the "cable company defendants" and/or the "cable company defendants" and defendants @Home Corporation, also referred to as Excite@Home, and RoadRunner have required the putative class to purchase both Internet data transmission services and interface/content services from @Home or RoadRunner. The complaint asserts claims under Section 1 of the Sherman Antitrust Act, the California Cartwright Act, and California unfair competition law and seeks injunctive relief and compensatory and treble damages. An amended complaint adding additional named plaintiffs was filed on December 30, 1999, and Cox filed its answer to the amended complaint on January 19, 2000. Discovery is pending. Cox intends to defend this action vigorously. The outcome of this matter cannot be predicted at this time. 1 3 Cox's subsidiary Cox California Telcom, L.L.C. is a defendant in three putative class action lawsuits and one additional non-class action suit that were filed in state and federal courts in California relating to the unauthorized publication of information pertaining to approximately 11,400 Cox telephone customers in the PacBell 2000 White Pages and 411 directory and in the Cox TelTrust information directory. The lawsuits assert various causes of action for breach of contract, invasion of privacy, negligence, commission of fraudulent or unfair business acts and practices in violation of California Business & Professions Code Section (c) 17-200 and violation of California Public Utilities Code Section (c) 2891 and 2891.1. The suits seek damages and injunctive relief. CoxTelcom, along with PacBell, has commenced reclaiming tainted PacBell White Pages and reprinting and redistributing corrected books. The parties to two of the class action lawsuits have entered into a stipulation of settlement, which is pending court approval. Cox intends to defend the remaining actions vigorously, though the outcome cannot be predicted at this time. Jerrold Schaffer and Kevin J. Yourman, on May 26, 2000 and May 30, 2000, respectively, filed class action lawsuits in the Superior Court of the State of California for the County of San Mateo on behalf of themselves and all other shareholders of @Home Corporation as of March 28, 2000 except for defendants seeking (a) to enjoin consummation of a March 28, 2000 letter agreement among Excite@Home's principal cable partners, including Cox, and (b) unspecified compensatory damages. Cox and David Woodrow, Cox's former Executive Vice President, Business Development, among others, are named defendants in both lawsuits. Mr. Woodrow formerly served as Cox's representative on the Excite@Home board of directors. For a more detailed description of the letter agreement, refer to Note 4 to Cox's unaudited consolidated financial statements filed on Form 10-Q for the quarterly period ended September 30, 2000. The plaintiffs, who continue to seek unspecified compensatory damages, assert that the defendants breached purported fiduciary duties of care, candor and loyalty to the plaintiffs by entering into the letter agreement and/or taking certain actions to facilitate the consummation of the transactions contemplated by the letter agreement. Pursuant to an agreement with the plaintiffs, the defendants have yet to answer the complaint. Defendants however have filed motions to dismiss on jurisdiction grounds which have been fully briefed and are awaiting a ruling by the court. Cox intends to vigorously defend this matter. On November 14, 2000, GTE.NET, LLC d/b/a Verizon Internet Solutions and Verizon Select Services, Inc. filed its suit against CoxCom, Inc. and Cox in the District Court for the Southern District of California. Verizon alleged that Cox and its subsidiary have violated various sections of the Communications Act of 1934 by allegedly refusing to provide Verizon with broadband telecommunications service and interconnection, among other things. On November 29, Verizon amended its Complaint to add CoxCom, Inc. as an additional defendant. Verizon seeks various forms of relief, including injunctive relief and damages. Cox intends to defend vigorously the action and, on January 8, 2001 filed a Motion to Dismiss or in the Alternative to Stay on Primary Jurisdiction Grounds. Cox also filed a Motion to Dismiss for Lack of Personal Jurisdiction. Prior to filing its responses to the Motions, Verizon filed a Motion for Summary Judgment on Prayers for Declaratory and Injunctive Relief. The Court granted Cox's ex parte Motion for an order continuing the hearing on the Summary Judgment Motion pending a ruling on Cox's jurisdictional motions. Oral argument on the jurisdictional motions is scheduled for February 20, 2001. 2 4 On February 6, 2001, plaintiffs Kimberly D. and William L. Bova, on behalf of themselves individually and a putative class of subscribers, sued Cox in United States District Court for the Western District of Virginia. The putative class includes persons outside of California, Nevada, Arizona and Idaho who on or after November 1, 2000 purchased broadband Internet access services from Cox and paid a franchise fee on those services. The suit assets that the collection of franchise fees by Cox from its broadband Internet access service subscribers outside of the Ninth Circuit is unlawful under the Telecommunications Act of 1996 and seeks restitution of all such fees collected. Cox's response to the complaint is due March 19, 2001, and Cox intends to defend the action vigorously. Cox and its subsidiaries are parties to various other legal proceedings which are ordinary and incidental to its business. Management does not expect that any of these other currently pending legal proceedings will have a material adverse impact on Cox's consolidated financial position, results of operations or cash flows. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Not applicable. (b) Not applicable. (c) Exhibits. 99.1 Press Release dated February 13, 2001 3 5 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COX COMMUNICATIONS, INC. Dated: February 14, 2001 By: /s/ Mark W. Major --------------------- Mark W. Major Treasurer EX-99.1 2 g67163ex99-1.txt PRESS RELEASE DATED FEBRUARY 13, 2001 1 Exhibit 99.1 COX COMMUNICATIONS ANNOUNCES PROPOSED OFFERING OF CONVERTIBLE SENIOR NOTES ATLANTA - Cox Communications, Inc. (NYSE: COX) today announced that it intends to raise $400 million (or $460 million if the initial purchasers exercise their overallotment option in full) through the offering, subject to market and other conditions, of convertible senior notes. The offering will be made in accordance with Rule 144A and Regulation S under the Securities Act of 1933, as amended. It is contemplated that the convertible senior notes will have a term of 20 years and be convertible into cash or shares of Cox Communications' Class A Common Stock at Cox Communications' option. Cox Communications expects to use the net proceeds from the sale of the convertible senior notes to repay commercial paper indebtedness and for general corporate purposes. Concurrently with Cox Communications' offering of its convertible senior notes, Cox Enterprises, Inc., the holder of a 66.26% interest in Cox Communications at December 31, 2000, intends to raise $400 million (or $460 million if the initial purchasers exercise their overallotment option in full) through a separate offering, subject to market and other conditions, of exchangeable senior notes. The Cox Enterprises exchangeable senior notes will be exchangeable into cash or shares of Class A Common Stock of Cox Communications at Cox Enterprises' option. The exchangeable senior notes offering will also be made in accordance with Rule 144A and Regulation S under the Securities Act of 1933. The offerings of the convertible senior notes by Cox Communications and the exchangeable senior notes by Cox Enterprises have not been registered under the Securities Act, and the convertible senior notes and the exchangeable senior notes may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from registration. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the convertible senior notes or the exchangeable senior notes. MORE 2 Cox Communications, Inc. Offering of Convertible Senior Notes February 13, 2001 Page 2 Cox Communications serves approximately 6.2 million customers nationwide, making it the nation's fifth largest cable television company. A full-service provider of telecommunications products, Cox Communications offers an array of services, including Cox Cable; local and long distance telephone services under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox@Home, Road Runner and Cox Express; advanced digital video programming services under the Cox Digital Cable brand; and commercial voice and data services via Cox Business Services. Cox Communications is an investor in telecommunications companies including Sprint PCS and Excite@Home, as well as programming networks including Discovery Channel, The Learning Channel, Outdoor Life and Speedvision. More information about Cox Communications can be accessed on the Internet at www.cox.com. Statements in this release are "forward-looking" statements, which are statements that relate to Cox Communications' future plans, earnings, objectives, expectations, performance, and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the broadband communications industry, our ability to achieve anticipated subscriber and revenue growth, our success in implementing new services and other operating initiatives, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations, and other risk factors described from time to time in Cox Communications' filings with the Securities and Exchange Commission, including Cox Communications' Annual Report on Form 10-K for the year ended December 31, 1999. Cox Communications assumes no responsibility to update any forward looking statements as a result of the new information, future events or otherwise. # # # MEDIA CONTACT Kimberley Brown Cox Communications, Inc. 404-269-8410 -----END PRIVACY-ENHANCED MESSAGE-----