Charter Communications' "B" paper traded at 991/2, which is slightly up for the name. Dealers said that Comcast Cable Communications' bid for AT&T's cable assets drove the sector, Charter included. "Charter is stronger on the bank of the Comcast potential acquisition of attractive cable assets," a dealer noted. "The multiple they are paying makes the entire sector look attractive." Charter, a domestic cable operator, is based in St. Louis, Mo. Company officials did not comment by press time.
Even in a market downturn, Charter has stayed relatively strong because of the immunity cable has to the economy. The "B" tranche has traded continuously over the last six months in the 99 to 100 range. Charter has a $540 million deal that breaks down into three tranches and expires in 2007. Pricing is LIBOR plus 23/ 4%. TD Securities is the lead arranger.