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Charter Bank Debt Recovers, Edison Mission Auction Fails

19 Aug 2003

Charter Communications bank debt has recovered from a brief dip in levels that occurred following the company's decision to cancel a tender offer for senior notes and senior discount notes. By midweek, the company's term loan "B" was trading in the 93 1/2 - 94 range up from the 91 1/2 - 93 1/2 range. The company was pursuing a $1.7 billion proposed note sale to back the tender offer. While $500 million of this new financing had been earmarked to pay down one or more of Charter's credit facility, traders had said that the effect of any pay down of the trading level for the bank debt would be minimal due to the large amount of bank debt that the company has outstanding across a number of different facilities. Calls to a Charter spokesman were not returned by press time.

A $5-10 million auction of Edison Mission Midwest Holdings bank debt was said to have failed this week after the seller of the paper was unable to receive the desired price for the loan. Dealers said the seller was looking for a better price than the 82-84 market where the paper is currently quoted. The identity of the seller could not be confirmed. TheodoreCraver, EdisonInternational's executive v.p. cfo and treasurer, could not be reached by press time.

19 Aug 2003