Charter Communications' new bank debt settled a touch higher from where it was trading after breaking into the market two weeks ago. Traders said the company's new "B" loan was changing hands in the 99 3/4-100 context and that the "A" loan was trading in the 98 3/4-99 range last week.
Banks have been paring down some exposure to the name by selling off the "A" piece, rather than selling the revolver at a considerable discount. The revolver is quoted wide in the 94-97 range. These firms have been able to sell down on the "A" but still stay within fees, traders explained. Institutional investors, on the other hand, are said to be rolling out of the "B" loan and picking up the "A" piece.
A Charter spokesman responded, "We don't look at daily trading levels. We take a longer term view of our capital structure and are committed to improving it, which should have a positive effect on all of our securities."