Charter Communications' bank debt traded up on the tender of $8.43 billion of its bonds. Its term "A" and "B"' loans were up 1/2 point to trade at par and 101, respectively. Charter is extending the maturities of its '09 and '10 notes to 2015, and its '11 and '12 notes by three years. The 10.75% '09 bonds climbed 3/4 of a point to 89.25, its 10.25% '10 bonds increased 1 1/2 points to 85.5, and its 11.125% '11 bonds were up a point to 79.75
The extension of the maturities has boosted the attractiveness of its bank loans, which now have earlier maturity dates than the new bonds. Its term "A" loan matures in 2010, while its term "B" and revolver mature in 2011. "The debt exchange offer has made the bank debt look good," said one trader.
A Charter spokeswoman said the company chose to tender for its securities to improve its liquidity profile and take advantage of market conditions. As of Sept. 9, $6.83 billion in principal amount of old notes have been tendered. This consists of $3.39 billion of old notes that mature in 2009 and 2010 and $3.44 billion principal amount of notes that mature in 2011 and 2012. The tender offer ends Sept. 26.
Charter made a net loss applicable to common stock of $709 million in the second quarter of 2005, compared to a pro forma net loss to common stock of $804 million in the same period last year.