The bond market continues to heat up for cable operators, as two MSOs nearly have doubled their offerings a little more than a week after they were first announced.
Adelphia Communications Corp. raised an intended convertible debt and senior note offering of $885 million to $1.5 billion, and Mediacom Communications Co. increased its planned $300 million placement of senior notes to $500 million.
On Jan. 8, Adelphia said it would offer $485 million in class A common stock and $400 million in five-year senior notes. On Jan. 18, Adelphia said it would increase the offering to $760 million in stock and $750 million in notes.
Mediacom had first said it would offer $300 million in senior debt on Jan. 16, but two days later upped that offering to $500 million.
"We are very pleased in how we are being viewed in the marketplace," said Mediacom chairman Rocco Commisso. "This was the biggest bond deal that we've ever done and we did it in 24 hours."
Earlier this month, Charter Communications Inc. placed $1.75 billion in high-yield debt, up from $850 million, and Comcast Corp. issued $1.5 billion in notes.
The Mediacom offering consists of 12-year, 9.5 percent senior notes and will be used to pay down existing debt and for general corporate purposes. Mediacom said it expects the offering to close Jan. 24.
According to its latest U.S. Securities and Exchange Commission filings, Mediacom has about $886 million in debt and about $537 million in unused lines of credit. After the current offering is completed, Commisso said, Mediacom's debt-to-cash flow ratio will remain under 6 times.