Banks boost Charter stox

Co. to borrow $300 mil to keep itself afloat

NEW YORK — Charter Communications is having a good week.

Shares jumped 11.49% to $3.88 Wednesday after a nice run-up the day before, on the heels of an analyst upgrade and on news that Paul Allen’s debt-laden cable company inked a deal with banks that could presage an infusion of fresh cash.

Charter said it will set up a new holding company through which it could borrow $300 million previously pledged by Allen, the billionaire Microsoft co-founder, to help keep the company afloat.

The funds would ensure Charter’s compliance with financial covenants under its existing credit facilities. Charter didn’t say in its statement whether or not it had decided to take up Allen’s offer.

On Tuesday, UBS Warburg raised its rating on the shares to “neutral” from “reduce” — essentially moving from a sell to a hold recommendation as the firm said a bankruptcy filing for the St. Louis-based group now seems unlikely.

Many Wall Streeters, including UBS, had feared the company might sink under its whopping debt of close to $19 billion and file for Chapter 11.

Charter’s stock has been languishing since last year, when the Dept. of Justice and the Securities and Exchange Commission launched probes into the cabler’s accounting practices.