Charter Debt Issues a Stumbling Block to Any M&A Deal, Wells Fargo Analyst Says

Restrictions on Charter Communications' debt are probably the biggest hurdle to any merger or acquisition, Wells Fargo analyst Marci Ryvicker emailed investors Monday. She said that despite Charter having been named repeatedly in recent weeks as a possible target for companies such as Altice, Verizon and Comcast, Charter's post-Time Warner Cable debt structure includes a debt capacity cap that makes a potential buyer dependent on substantial equity to fund such a deal: Altice is the least-likely buyer; Comcast is unlikely to join Altice in a joint bid; and a Verizon deal faces too many regulatory and financial barriers, she said. MoffettNathanson's Craig Moffett last week also dismissed Charter M&A speculation (see 1708100027).