NEW YORK, Feb 13 (Reuters) - Cablevision Systems Corp CVC.N on Friday began an offer to purchase $1.4 billion of bonds coming due in the coming months, following recent bond sales made to raise funds to repay the maturing debt.
Cablevision said it will buyback $500 million in floating rate notes due April 1, $500 million in 8.125 percent bonds due July 15 and $400 million of 8.125 percent bonds due August 15.
The company on Monday raised $500 million in new bond sale, following a $750 million sale in January.
Moody’s Investors Service on Monday raised Cablevision’s short term liquidity ratings, citing the successful capital raising effort.
Investors have been concerned that the frozen credit markets may make it difficult for companies laden with debt to meet their regular interest payments or raise new funds to pay down due debt.
Cablevision is offering a premium if investors tender the debt by February 27, and will pay $1,002.50 per $1,000 in debt for its floating rate notes, $1,022.84 per $1,000 for its notes due July 15 and $1,027.63 per $1,000 for its bonds due August 15.
After that date, Cablevision will pay $997.50, $1,000 and $1,000 for each bond, respectively, until the tender deadline on March 13.
Like many cable companies, Cablevision has a heavy debt load with around $11 billion of net debt and a market capitalization of around $5 billion.
Cablevision serves more than 3 million cable television subscribers in the New York area and also owns cable networks like AMC and Sundance as well as sport teams like New York Knicks basketball team and venues like Madison Square Garden.
Reporting by Karen Brettell; Additional reporting by Yinka Adegoke; Editing by Kenneth Barry