Wunderlich Securities Says Charter Communications is Nearing Debt Agreement Aimed at Buying Time Warner Cable

In a report published Friday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $170.00 price target on

. In the report, Wunderlich Securities noted, “The WSJ is reporting that Buy-rated Charter Communications (CHTR) is near a bank deal for a funding package underlying a near-term bid for Time Warner Cable (TWC-$136.80, Hold). We provide updated deal and valuation scenarios for a 100% Charter bid, and for a bid that has Comcast (CMCSA-$49.78, Buy) taking 31% of TWC or near 3.5mm video homes. Privately held Cox Communications may be more a potential co-bidder than standalone entrant, given the Cox family's leverage posture and portfolio emphasis. Bond trading platform MarketAxess is, encouragingly for deal prospects, suggesting minimal trading effects for Charter and TWC debt, with Charter bonds with 2020-24 maturities yielding from 4.3% to 6.5% depending on capital structure position,and TWC bonds also yielding from 4.5% to 6.5%.” Charter Communications closed on Wednesday at $134.98.