In evidence that large cablecos are not immune to the challenges brought on by a badly battered economy, Charter Communications Inc. (CHTR) announced today that it has asked its financial advisor to discuss with bondholders financial alternatives to improve its balance sheet.
Charter’s longtime financial advisor is Lazard LLC. Charter did not provide details about possible options it would consider and/or act on. It’s the third largest, publicly traded cableco in the U.S.
“We believe engaging in discussions with our bondholders, aimed at improving our capital structure and enhancing our financial flexibility, is in the company’s and our customers’ best interests,” said Neil Smit, president and chief executive officer, in prepared comments. “Our objective in these discussions is to improve our balance sheet, which will better position Charter for the future, while we continue to focus on delivering quality service to our customers and growing our business.”
Charter is far from alone in focusing on near-future capex challenges. AT&T Inc. (T) said it was cutting its 2009 capex back to 2008 levels when it recently announced plans to layoff 12,000 workers.
Charter said that, in the third quarter, its revenue increased 7.3 percent, and net customer additions increased more than 50 percent year over year.
Charter noted that its cash on hand and cash equivalents as of Dec. 10, 2008, were in excess of $900 million, which is available to pay operating costs and expenses.
