-----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, NZ8l1vSTHi7h9TVm26R+2IPzMdtRhvZLZlfHbnE8LUaQHXEmfrIcHknWS8/xiqtH sUXCFfH2a/KAyl92Zu3grw== 0000950123-99-003232.txt : 19990414 0000950123-99-003232.hdr.sgml : 19990414 ACCESSION NUMBER: 0000950123-99-003232 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990408 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990413 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NTL COMMUNICATIONS CORP CENTRAL INDEX KEY: 0000906347 STANDARD INDUSTRIAL CLASSIFICATION: CABLE & OTHER PAY TELEVISION SERVICES [4841] IRS NUMBER: 521822078 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22616 FILM NUMBER: 99592253 BUSINESS ADDRESS: STREET 1: 110 E 59TH ST STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2129068440 MAIL ADDRESS: STREET 1: 110 EAST 59TH STREET STREET 2: 26TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: NTL INC /DE/ DATE OF NAME CHANGE: 19970326 FORMER COMPANY: FORMER CONFORMED NAME: INTERNATIONAL CABLETEL INC DATE OF NAME CHANGE: 19930601 8-K 1 NTL COMMUNICATIONS CORP. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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): April 8, 1999 NTL COMMUNICATIONS CORP. (Exact name of Registrant as Specified in Charter) Delaware 0-22616 52-1822078 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 110 East 59th Street, New York, New York 10022 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (212) 906-8440 (Former Name or Former Address, if Changed Since Last Report) 2 ITEM 5. OTHER EVENTS On April 8, 1999, NTL Communications Corp. announced that it had priced an issue of pound sterling 330 million of 9 3/4% Senior Deferred Coupon Notes due 2009 (the "Notes"). The Notes have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Notes were offered and sold within the United States pursuant to Rule 144A under the Securities Act only to "qualified institutional buyers" and outside the United Sates in accordance with Regulation S under the Securities Act. In connection with that offering, NTL included in its offering memorandum certain unaudited pro forma financial data. That data is attached hereto as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits. Exhibit 99.1 Unaudited Pro Forma Financial Data 2 3 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. NTL COMMUNICATIONS CORP. By: /s/ Richard J. Lubasch Name: Richard J. Lubasch Title: Senior Vice President, General Counsel and Secretary Dated: April 12, 1999 3 4 EXHIBIT INDEX Designation Description 99.1 Unaudited Pro Forma Financial Data 4 EX-99.1 2 UNAUDITED PRO FORMA 1 EXHIBIT 99.1 UNAUDITED PRO FORMA FINANCIAL DATA In March 1999, NTL acquired Diamond under the terms of the Diamond acquisition agreement in exchange for NTL's common stock. In December 1998, NTL acquired EGT in exchange for NTL's cash and preferred stock. In October 1998, NTL completed its acquisition of Comcast UK Cable Partners Limited in exchange for NTL's common stock. On June 16, 1998, NTL agreed to acquire substantially all of the operations of ComTel in a two-part transaction that was completed in September 1998 in exchange for approximately Pound Sterling 550 million. The cash portion of the purchase price was financed using funds available under NTL's credit facility. The amounts borrowed under the credit facility were repaid with most of the proceeds from the issuance of our 11 1/2% notes and our 12 3/8% notes in November 1998. The unaudited pro forma financial data presented herein give effect to the completed acquisitions of Partners, ComTel and EGT, and give further effect to the subsequent acquisition of Diamond. The pro forma financial data is based on the historical financial statements of Partners, ComTel, EGT, Diamond and NTL. The balance sheet data reflects the translation of all Pound Sterling denominated amounts at the December 31, 1998 rate of $1.6595 = Pound Sterling 1.00. The statements of operations data reflects the translation of all Pound Sterling denominated amounts at the average rate for the year ended December 31, 1998 of $1.6571 = Pound Sterling 1.00. The acquisitions have been accounted for in the pro forma financial data using the purchase method of accounting. Accordingly, the assets acquired and liabilities assumed have been recorded at their estimated fair values, which are subject to further adjustment based upon appraisals and other analyses. Management of NTL does not currently expect future adjustments from these analyses, if any, to be material to the unaudited pro forma financial statements. The pro forma financial statements do not give effect to the sale in January 1999 of NTL 5 1/4% preferred stock and warrants to Microsoft for $500 million. Under the terms of the Diamond indentures governing the terms of the Diamond notes, the share exchange in the Diamond acquisition constituted a "Change of Control". In general, upon the occurrence of a change of control, each holder of the Diamond notes has the right to require Diamond to repurchase the Diamond notes in cash at a purchase price equal to 101% of the accreted value or principal amount, as applicable. The pro forma financial statements do not give effect to the repurchase, if any, of the Diamond notes. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 1998 give effect to the acquisitions as if they had been consummated on January 1, 1998. The unaudited pro forma condensed combined balance sheet as of December 31, 1998 gives effect to the acquisition of Diamond as if it had been consummated on December 31, 1998. Partners owned a 27.5% interest (the "Birmingham Cable Equity Interest") in Birmingham Cable Corporation Limited and currently owns a 50% interest (the "Cable London Equity Interest" and, together with the Birmingham Cable Equity Interest, the "Equity Interests") in Cable London PLC ("Cable London"). Partners accounts for the Equity Interests using the equity method. The following pro forma financial data give effect to the issuance of 0.3745 shares of NTL common stock for each Partners common share and the sale of the Birmingham Cable Equity Interest to TeleWest Communications plc prior to the acquisition of Partners by NTL. The TeleWest agreement provides that at any time during the shoot-out period, Partners may give notice to TeleWest of an offer to sell to TeleWest the Cable London Equity Interest and related assets for the cash sum specified in the offer notice. If Partners fails to give the offer notice prior to the end of the shoot-out period, Partners will be deemed to have delivered an offer notice for a sum equal to Pound Sterling 100 million. TeleWest will have 30 days in which to accept or decline the offer. If TeleWest accepts the offer, Partners will sell to TeleWest the Cable London Equity Interest and related assets at the 2 sum specified in the offer notice. If TeleWest declines the offer, TeleWest will sell to Partners all of the shares in the capital of Cable London owned by TeleWest at the sum specified in the offer notice. The unaudited pro forma financial statements do not give effect to the sale of the Cable London Equity Interest to TeleWest or Partners' purchase of TeleWest's shares in the capital of Cable London, as management is currently unable to determine the probable outcome of the "shoot-out" procedure. The effect of the sale of the Cable London Equity Interest by Partners would be to eliminate Partners' investment in Cable London and increase cash by the amount of the proceeds. The effect of Partners' purchase of all of TeleWest's shares in the capital of Cable London would be to reduce Partners' cash and increase the amount of Partners' investment in Cable London. The pro forma adjustments are based upon available information and assumptions that the management of NTL believes are reasonable at the time made. The unaudited pro forma condensed combined financial statements do not purport to present the financial position or results of operations of NTL had the acquisitions occurred on the dates specified, nor are they necessarily indicative of the financial position or results of operations that may be achieved in the future. The unaudited pro forma condensed combined statements of operations do not reflect any adjustments for synergies that NTL expects to realize commencing upon consummation of the acquisitions. No assurances can be made as to the amount of cost savings or revenue enhancements, if any, that may be realized. 3 NTL INCORPORATED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 1998 (IN THOUSANDS, EXCEPT PER SHARE DATA)
PRO FORMA NTL COMTEL PARTNERS EGT FOR PRIOR DIAMOND (HISTORICAL) (HISTORICAL) (HISTORICAL) (HISTORICAL) ADJUSTMENTS ACQUISITIONS (HISTORICAL) ------------ ------------ ------------ ------------ ----------- ------------ ------------ REVENUES.................... $ 747,015 $ 97,222 $105,348 $17,110 $ (789)C $ 965,906 $ 147,078 COSTS AND EXPENSES Operating expenses.......... 372,134 62,393 33,965 7,893 -- 476,385 47,088 Selling, general and administrative expenses.... 299,494 32,285 48,448 -- -- 380,227 61,573 Franchise fees.............. 25,036 -- -- -- -- 25,036 -- Corporate expenses.......... 17,048 -- 3,977 -- -- 21,025 -- Non-recurring charges....... (4,194) -- -- -- -- (4,194) -- Depreciation and amortization............... 266,112 41,035 37,202 3,157 29,229B 376,735 71,650 --------- -------- -------- ------- -------- ---------- --------- 975,630 135,713 123,592 11,050 29,229 1,275,214 180,311 --------- -------- -------- ------- -------- ---------- --------- Operating loss.............. (228,615) (38,491) (18,244) 6,060 (30,018) (309,308) (33,233) OTHER INCOME (EXPENSE) Interest and other income... 46,024 476 14,983 -- -- 61,483 21,681 Interest expense............ (328,815) (7,459) (49,477) -- (62,417)E (448,168) (140,234) Other....................... 4,152 -- (3,326) -- 11,574D 12,400 12,553 --------- -------- -------- ------- -------- ---------- --------- Loss before income taxes.... (507,254) (45,474) (56,064) 6,060 (80,861) (683,593) (139,233) Income tax benefit.......... 3,327 -- -- -- 3,327 -- --------- -------- -------- ------- -------- ---------- --------- Loss before extraordinary item....................... (503,927) (45,474) (56,064) 6,060 (80,861) (680,266) (139,233) Loss from early extinguishment of debt..... (30,689) -- -- -- -- (30,689) -- --------- -------- -------- ------- -------- ---------- --------- Net loss.................... (534,616) (45,474) (56,064) 6,060 (80,861) (710,955) (139,233) Preferred stock dividends... (18,761) -- -- -- (14,092)F (32,853) -- --------- -------- -------- ------- -------- ---------- --------- Net loss available to common shareholders............... $(553,377) $(45,474) $(56,064) $ 6,060 $(94,953) $ (743,808) $(139,233) ========= ======== ======== ======= ======== ========== ========= Net loss per common share -- basic and fully diluted.... $ (13.43) $ (13.00) ========= ========== Weighted average shares outstanding................ 41,202 16,004 57,206 ========= ======== ========== ADJUSTMENTS PRO FORMA ----------- ---------- REVENUES.................... $ -- $1,112,984 COSTS AND EXPENSES Operating expenses.......... -- 523,473 Selling, general and administrative expenses.... -- 441,800 Franchise fees.............. -- 25,036 Corporate expenses.......... -- 21,025 Non-recurring charges....... -- (4,194) Depreciation and amortization............... 91,975B 540,360 -------- ---------- 91,975 1,547,500 -------- ---------- Operating loss.............. (91,975) (434,516) OTHER INCOME (EXPENSE) Interest and other income... -- 83,164 Interest expense............ -- (588,402) Other....................... -- 24,953 -------- ---------- Loss before income taxes.... (91,975) (914,801) Income tax benefit.......... -- 3,327 -------- ---------- Loss before extraordinary item....................... (91,975) (911,474) Loss from early extinguishment of debt..... -- (30,689) -------- ---------- Net loss.................... (91,975) (942,163) Preferred stock dividends... -- (32,853) -------- ---------- Net loss available to common shareholders............... $(91,975) $ (975,016) ======== ========== Net loss per common share -- basic and fully diluted.... $ (13.90) ========== Weighted average shares outstanding................ 12,948A 70,154 ======== ==========
4 NTL INCORPORATED PRO FORMA CONDENSED COMBINED BALANCE SHEET DECEMBER 31, 1998 (IN THOUSANDS)
NTL DIAMOND (HISTORICAL) (HISTORICAL) ADJUSTMENTS PRO FORMA ------------ ------------ ----------- ----------- ASSETS: Current assets: Cash, cash equivalents and marketable securities........................ $ 996,896 $ 273,383 $ -- $ 1,270,279 Other current assets................. 207,604 20,083 -- 227,687 ----------- ---------- ---------- ----------- Total current assets................... 1,204,500 293,466 -- 1,497,966 Investment in affiliates............... 229,093 -- -- 229,093 Fixed assets, net...................... 3,854,430 773,105 134,750A 4,762,285 Intangible assets, net................. 725,028 135,404 1,075,253A 1,935,685 Other assets, net...................... 181,046 33,724 -- 214,770 ----------- ---------- ---------- ----------- Total assets................. $ 6,194,097 $1,235,699 $1,210,003 $ 8,639,799 =========== ========== ========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Other current liabilities............ $ 580,260 $ 81,191 $ 3,000A $ 664,451 Current portion of long-term debt and capital leases.................... 23,691 -- -- 23,691 ----------- ---------- ---------- ----------- Total current liabilities.... 603,951 81,191 3,000 688,142 Long-term debt......................... 5,043,803 1,333,230 -- 6,377,033 Deferred income taxes.................. 67,062 -- 41,773A 108,835 Senior redeemable exchangeable preferred stock...................... 124,127 -- -- 124,127 Shareholders' equity: Preferred stock...................... 2 -- -- 2 Common stock and additional paid-in capital........................... 1,502,163 -- 986,508A 2,488,671 Acquired company equity.............. -- (178,722) 178,722A -- Accumulated other comprehensive income............................ 104,657 104,657 Deficit.............................. (1,251,668) (1,251,668) ----------- ---------- ---------- ----------- 355,154 (178,722) 1,165,230 1,341,662 ----------- ---------- ---------- ----------- Total liabilities and shareholders' equity....... $ 6,194,097 $1,235,699 $1,210,003 $ 8,639,799 =========== ========== ========== ===========
5 NTL INCORPORATED PRO FORMA ADJUSTMENTS (IN THOUSANDS)
DIAMOND ---------- A PURCHASE PRICE AND ALLOCATION PURCHASE PRICE NTL Shares issued........................................... 12,948 NTL stock price (20 day average prior to closing)........... $ 76.19 ---------- Subtotal.................................................... 986,508 Fees........................................................ 3,000 ---------- Purchase Price.............................................. 989,508 Deficiency at December 31, 1998............................. 178,722 Intangibles at December 31, 1998............................ 135,404 ---------- Excess of Purchase Price over net tangible assets acquired.................................................. $1,303,634 ========== ALLOCATED TO Fixed assets................................................ $ 134,750 Intangible assets(1)........................................ 1,210,657 ---------- Deferred taxes.............................................. (41,773) ---------- $1,303,634 ==========
PRIOR ACQUISITIONS DIAMOND ------------ ------- B DEPRECIATION AND AMORTIZATION For the year ended December 31, 1998: Depreciation of fixed asset allocation (over 7 years)..... $ (126) $19,250 Amortization of intangibles (over 5-15 years)............. 72,145 80,710 Historical amortization of intangibles.................... (42,790) (7,985) -------- ------- $ 29,229 $91,975 ======== ======= C CONSULTING REVENUE Partners' consulting fee income earned under consulting agreement with Birmingham which ceased upon the sale of Birmingham For the year ended December 31, 1998........................ $ 789 =======
- --------------- (1) The intangible assets include customer lists, license acquisition costs and goodwill. 6 NTL INCORPORATED PRO FORMA ADJUSTMENTS (IN THOUSANDS)
DIAMOND ------- D EQUITY IN NET LOSS Partner's equity in the net loss of Birmingham that will no longer be recorded after the sale of Birmingham For the year ended December 31, 1998........................ $11,574 ======= E INTEREST EXPENSE Interest on ComTel Debt Not Assumed For the year ended December 31, 1998...................... $(7,431) Interest on the borrowings utilized to acquire ComTel(1) For the year ended December 31, 1998...................... 77,567 Amortization of fees on borrowings recorded as deferred financing costs For the year ended December 31, 1998...................... 2,015 Historical interest expense on Partners' Credit Facility(2) For the year ended December 31, 1998...................... (9,734) ------- Net Statement of Operations Impact For the year ended December 31, 1998...................... $62,417 ======= F PREFERRED STOCK DIVIDEND Dividends at 9.9% on the preferred stock issued in the ComTel and EGT acquisitions For the year ended December 31, 1998...................... $14,092 =======
- --------------- (1) On June 16, 1998, NTL agreed to acquire substantially all of the operations of ComTel in a two-part transaction in exchange for approximately Pound Sterling 550 million. A portion of the purchase price (Pound Sterling 475 million) was financed using funds available under our credit facility. The credit facility bore interest at LIBOR plus 3% per annum increasing by 0.25% per annum each month beginning three months after the first drawdown to a maximum of 4% per annum. In November 1998, the credit facility was repaid using most of the proceeds from the issuance of our 11 1/2% notes and the 12 3/8% notes. (2) This facility was repaid by Partners with the proceeds from the sale of the Birmingham Cable Equity Interest. -----END PRIVACY-ENHANCED MESSAGE-----