Charter Communications' "B" loan traded up last week as the company prepared to come to market with an amendment that will allow its principal owner, Paul Allen, to provide a $300 million back-up credit. Pieces of the "B" loan traded into the 92-93 range from the 91 context with the news. The amendment will ask lenders to allow the back-up credit a second-lien security on some of the company assets. Moreover, the amendment will provide a 50 basis point increase to the interest rate provided on the "B" piece, pushing up the spread over LIBOR to 23/4%. The extra coupon was the main cause in the higher trading price of Charter's loan, noted one buysider. There were also rumors that some kind of debt-to-equity swap may be ahead for the company. The bank meeting to introduce the amendment was set to be held last Friday as LMW went to press. A Charter spokesman said no announcements had been made and the company does not comment on rumor or speculation.
Charter Inches Up With Allen Back-Up Proposal