Out With Charter, In With Adelphia

  • 27 Jan 2002
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Adelphia Communications' bank debt ticked up from 99 3/8 to 99 7/8 in response to an upgrade from Moody's Investors Service, while competitor Charter Communications traded off a bit at 98 7/8. A market player said that Charter, usually a neck and neck competitor with Adelphia, may have traded down slightly as its ratings remained at Ba3, a notch below Adelphia. Other traders suggested portfolios thick with Charter might have traded out for a piece of its competitor. One source said roughly $2.5 million of Adelphia changed hands midweek with an institutional account as the buyer. Calls to officials at the companies were not returned by press time.

The secondary market has taken a liking to the cable industry recently compared to other sectors as investors view cable as safe and defensive. The newfound popularity, coupled with a lack of new issue, may explain rising levels, one trader explained. In December, Charter Communications was trading at 98 1/4 and Adelphia Communications traded up to 98 1/2. (LMW, 12/8).

Russell Solomon, analyst at Moody's, said Adelphia had a B2 rating before the upgrade to Ba2 because of the company's heavy debt load. After raising roughly $3 billion in equity there has been a dollar-for-dollar reduction of debt and build up of cash balances-- a move providing cushion for lenders, he explained.

  • 27 Jan 2002

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 14,443 29 18.07
2 Bank of America Merrill Lynch (BAML) 8,264 27 10.34
3 Lloyds Bank 7,329 24 9.17
4 Citi 6,748 19 8.44
5 JP Morgan 5,220 8 6.53

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 117,398.62 338 11.04%
2 Bank of America Merrill Lynch 94,721.79 272 8.91%
3 JPMorgan 92,612.23 269 8.71%
4 Wells Fargo Securities 82,597.19 239 7.77%
5 Credit Suisse 69,442.99 183 6.53%