Charter Communications' revolver has jumped two-and-a-half points to the 97 3/4-98 1/4 range. Some market participants are predicting proceeds from a new $550 million bond issuance would permanently reduce the size of the facility. Meanwhile, the cable TV operator's "A" and 'B" loans traded up a point around 99 1/4-99 1/2 and 100-100 1/4, respectively.
It is not a sure thing that proceeds from the bond deal will be directed toward the revolver. "People were jumping the gun thinking the revolver will be paid down, but it should not be," a dealer said. Instead, "It seems that the market was a little bit out of balance where there were more buyers than sellers," he said.
Mary Jo Moehle, director of investor relations at Charter, said the net proceeds would be used to pay down debt and for general corporate purposes. However, the company has not made further disclosures.