The planned sale of $1.8 billion worth of stock and other equity crunched Charter Communications' stock price Wednesday, but the shares came back.
Charter's shares dropped as much as 12% to $21.06 in the wake of news that the company filed to sell $1.3 billion worth of stock and $500 million worth of bonds convertible into stock. The company plans to use the cash to repay part of its $13 billion in debt, trimming leverage from 7.5 times cash flow to about 7 times. Charter's stock rebounded to $22.44, off 6% for the day.
Charter executives have jumped out onto a nationwide road show and hope to have the stock deal wrapped up by Memorial Day. Charter has sold $3.25 billion in bonds so far this year, partly to pay for a package of systems from AT&T. - John Higgins