The bank debt of cable companies received a five- to 10-point boost in the secondary market following the news that RCN had sold its New Jersey-area cable systems for $245 million. "It's the first time the market has seen a valuation of a cable property in a long time," one trader said. As a result, Charter Communications' bank debt firmed up with a bid-ask spread quoted in the 84-88 range, up from the low 80s where it was seen trading last week. Even scandalized Adelphia Communications benefited from good industry buzz. Traders said that Adelphia's Century Cable term loan was bid in the low 70s, up from the mid-60s at the end of last week. No trades could be confirmed in the thin summer market.
But cable companies weren't the only names drawing interest this week. Lyondell Chemical's term loan "E" regained ground after general concerns with the chemical sector had caused the paper to dip below par last week. Traders said the paper changed hands in the 100 1/4 context. "People thought the name had value at 98," one trader said.
And a $13.5 million piece of Hayes Lemmerz International's pro-rata paper was auctioned off on Tuesday. One dealer quoted the trade in the 86 3/4-87 context, while another said it went off north of 87. No further details could be ascertained by press time.
Finally, Carl Icahn reportedly has secured $947 million of XO Communications' $1 billion in outstanding senior secured bank debt. The renowned financier is in support of the company's plan to pursue a reorganization in conjunction with an $800 million injection by Forstmann Little and Telefonos de Mexico. A bankruptcy court approved that plan, but the company first must prove that it satisfies all the conditions under the investment agreement.