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 10,542 20 17.55
2 Bank of America Merrill Lynch (BAML) 6,103 21 10.16
3 Citi 5,130 13 8.54
4 JP Morgan 4,681 6 7.79
5 Morgan Stanley 4,137 11 6.89

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 81,261.11 236 11.54%
2 Bank of America Merrill Lynch 66,433.81 187 9.43%
3 Wells Fargo Securities 57,637.40 170 8.18%
4 JPMorgan 53,570.42 158 7.61%
5 Credit Suisse 45,349.30 117 6.44%