Charter Pumps Up Bond Sale

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Charter Communications Inc. pumped up an earlier debt offering to $900
million from $600 million, causing some analysts to believe it might be gearing
up for future acquisitions.

Charter priced three tranches of high-yield debt Jan. 8 -- $350 million in
seven-year senior notes at 9.25 percent, $300 million in nine-year senior notes
at 10 percent and $250 million in 10-year senior discount notes at 12.125
percent.

The discount notes have a principal at maturity of $450 million. Charter said
it expects the offering to close Jan. 14.

On Jan. 4, Charter said it planned a $600 million offering of senior discount
notes through subsidiaries Charter Communications Holdings LLC and Charter
Communications Holdings Capital Corp. Demand was high for the bonds, prompting
the increase.

The company said it would repay, but not reduce permanently, indebtedness
under revolving credit lines of its subsidiaries and for general corporate
purposes.

Charter, AOL Time Warner Inc., Cox Communications Inc. and Adelphia
Communications Corp. could be among MSOs interested in acquiring nonstrategic
systems from AT&T Comcast Corp. after AT&T Broadband and Comcast Corp.
close their merger.

Charter spokesman Andy Morgan said the debt offering is not targeted for
acquisitions, although the company is always on the lookout for properties that
would fit in with its existing clusters.

'We've left the door open,' Morgan said. 'We definitely would be looking at
any properties that fit with our current footprint.'

But Morgan said Charter believes it is at a sufficient size with about 7
million subscribers and it is currently not in acquisition talks with any
operators.

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