Charter term loans unmoved by update on contract dispute with Disney

By Sara Rosenberg

New York, Sept. 1 – Charter Communications Inc.’s term loans held steady in the secondary market on Friday after the company updated investors on its contract negotiation dispute with The Walt Disney Co. that resulted in Disney removing its TV channels from Charter Spectrum on Thursday.

Charter’s term loan B-1 and term loan B-2 were quoted at 99 3/8 bid, 99 7/8 offered on Friday, unchanged from Thursday’s closing levels, a trader remarked. The trader went on to say that the B-1 loan was quoted at par bid and the B-2 loan was quoted at 99½ bid earlier in the day on Thursday, but both loans headed down to 99 3/8 bid before the end of the day.

According to Charter, Disney has insisted on unsustainable price hikes and forcing customers to take their products. Charter is also accusing Disney of wanting to require customers to pay twice to get content apps.

Charter said in a news release it would accept Disney’s “market” rates in exchange for lower penetration minimums to deliver package flexibility for customers, inclusion of ad-supported direct-to-consumer apps within packaged linear products so the customer does not have to pay twice for similar programming, and would commit to market Disney’s direct-to-consumer products to broadband-only customers.

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