Charter Communications' bank debt traded down to 96 1/2 , which had softened about a point and a half, on the combination of a weakening broadcasting sector and news that the company's ceo is resigning. An estimated $5 million traded, but buyers and sellers could not be determined. In a Sept. 25 press release, the company announced that Jerry Kent would not extend his employment. The cable company is based in St. Louis, Mo.
Dealers say an overall downgrade in levels for the sector is also the result of low advertising revenues during the week of the World Trade Center tragedy, when broadcasters focused on uninterrupted news coverage. Calls to Kent Kalkwarf, cfo, were referred to spokeswoman Mary Jo Moehle, who did not return them by press time.
Earlier this month Charter's debt softened to 98 7/8. Dealers said the drop was in response to Adelphia Communications' issuance of more cable paper (LMW, 9/2). Charter has a $540 million deal that breaks down into three tranches and expires in 2007. Pricing is LIBOR plus 2 3/4%. TD Securities is the lead arranger.