Charter Debt Softens on More Cable Supply
Cable names are continuing to soften with Adelphia Communications flooding the secondary market with $3 billion in new issue. Charter 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 23/ 4%. TD Securities is the lead arranger.