Adelphia Communications Corp.'s Century Cable term loans moved into the 80s range up from the mid-to-high 70s last week. The piece of the Century Cable facility dubbed "Century New" by traders, due to its more recent issue date, traded at 80 and the "Century Old" bank debt was bid at 81 by midweek. The recent uptick marks the highest levels that the Century Cable term loans have seen since last summer. Market players said there were no developments concerning the company's bid to reorganize. Instead, the rally was driven by investors who were scrambling to buy paper.
One trader explained that many of the Adelphia facilities that have the Rigas family co-borrowing arrangements attached to them, like the Century Cable facilities, were getting a second look since Bank of America released a research report on the company in early March. This report touted the Century Cable Group as the "steal of the century" (LMW, 3/17). The Century Cable paper has been rallying since, climbing out of the high 60s. The report suggested that the credits with co-borrowing arrangements would not suffer from any subordination. "If you are not subordinated, then you are covered," the trader said. The trader added the bank debt offers investors yields of more than 15% if the paper is held until the point it is taken out. Calls to Vanessa Wittman, Adelphia's new cfo, were not returned by press time.