A spate of trades came in the cable sector last week as dealers noted the industry's insulation from economic swings. There were several trades for Charter Communications and Adelphia Communications last week. A $4 million piece of Adelphia's "B/C" paper traded at 995Ž 8, while Charter "B" tranche traded at 995Ž 8, traders said. Both are up slightly from the 99 range. "Cable names are all stronger; it's counter cyclical," said one. "The industry is not dependent on the economy. Even in a downturn, people still keep their cable, while people may not be getting a new car." Another dealer agreed, jokingly remarking that cable television is one of the last things to go as the economy nosedives. "Cable is usually the last thing to go--that and beer," he said. Adelphia, based in Coudersport, Penn., services five million customers. Charter is a St. Louis-Mo. Company with a little more than six million customers.
Dealers reported four trades on Monday of Charter pieces, each at $5 million, ranging from 995Ž 8 to 993Ž 4. Adelphia has a $2.2 billion deal which breaks down into a $1.5 billion revolver and a $700 million term loan "B" and is priced at LIBOR plus 3%. Bank of America, CIBC World Markets, Barclays Capital, J.P. Morgan Chase and Toronto-Dominion Securities are the lead arrangers for the deal, according to Capital DATA Loanware. Spokesmen at all banks either declined to comment or did not return calls by press time.