Cablevision Systems is looking to buy back and retire about $1.4 billion in debt soon to come due, using the proceeds from two separate bond sales conducted in recent weeks.
Cablevision and its subsidiary CSC holdings are offering a premium for $500 million in senior notes due April 1, $500 million in senior notes due July 15, and another $400 million in senior debentures due Aug. 15.
Cablevision said payments for securities purchased will include accrued and unpaid interest from, and including, the last interest payment date applicable to the relevant series of securities to, but excluding, the applicable settlement date.
While Cablevision is apparently achieving some success in managing its debt in a tight credit market, the market is still skeptical. Moody’s Investors Service evaluated Cablevision’s most recent bond sale, a $500 million debt offering, and assigned it a B1 rating. In other words, Moody’s gave the recent Cablevision offer the status of junk bonds.