Cable names are continuing to soften with
flooding the secondary market with $3 billion in new
Communications' bank debt notched down to
98 7/8, then offers popped back up to 99 1/8. Credits in the sector
have remained liquid, as market players cite steady business, but
all the activity may be coming back to haunt some of these names.
"It's about demand," explained a dealer. "Cable names have traded
around so much, everyone's holding a piece." Charter, a cable
systems operator, is based in St. Louis, Mo. Calls to
Kent Kalkwarf, cfo,
were referred to the investor relations department and not returned
by press time.
In late July Charter softened to 99 3/8, as
dealers cited more cable paper coming into the market (LMW, 7/29).
The company has a $540 million deal that breaks down into three
tranches and expires in 2007. Pricing is LIBOR plus
is the lead