DOW JONES NEWSWIRES
A Cablevision Systems Corp. (CVC) unit again boosted the size of
its planned debt buyback, increasing it another $75 million to $975
million.
Cablevision early this month intially announced plans to sell
$500 million in notes to repurchase stock from unit CSC Holdings
Inc. The unit, in turn, intended to use the proceeds and cash on
hand to repay or repurchase $500 million of notes maturing by 2012.
Both figures were raised to $900 million a day later as demand for
Cablevision's debt was much greater than expected.
On Wednesday, CSC Holdings boosted the offer again and as a
result extended the early tender deadline. Including that $30
premium per $1,000 of notes, the unit is offering $1,050 for each
$1,000 of principal in 7.625% notes due 2011 and $1,046.25 for
$1,000 principal in 6.75% notes due 2012. The early tender deadline
was extended one day to 5 p.m. EDT Wednesday.
As of the initial deadline, $670 million of the 2011 notes and
$292.9 million of the 2012 notes were tendered. There are $1
billion and $500 million, respectively, of the notes
outstanding.
In July, Fitch Ratings follwed in the steps of Moody's by
boosting Cablevision closer to investment-grade territory, saying
its debt levels and earnings were improving.
Later that month, Cablevision said it would spin off its Madison
Square Garden and related assets - like the New York Knicks and
Rangers sports teams - so it could return focus to its core
operations.
Shares closed Tuesday at $25.07 and were inactive premarket.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com