A $5 million piece of Adelphia Communications' term loan "B" traded at 99 7/8, up slightly from previous levels, dealers said. "They got a lot of new capital, so the funding issues might've been resolved. People's fears may have subsided," a trader said. Another dealer said all of the cable names are being bid higher. "It's a recession-proof industry," he said. A market watcher said the stability in the high-yield market is having a positive effect on the bank market. He said Adelphia recently did some convertible issues. "It gives them additional capital and gives people a warm, fuzzy feeling," he said, also noting that stock prices from the middle of December to mid-January rose 100%, from 25 to 50. Two weeks ago, Adelphia traded up to 99 5/8, up from its previous level at around 99. The St. Louis, Mo., services a little more than six million customers.
New Capital Sparks Higher Levels For Adelphia