The Dolan family’s decision this week to drop its plan for a leveraged buyout of Cablevision but to push instead for a $3bn special dividend earned a mixed reception from the bond market.

Bondholders were relieved to see the back of potentially massive additional leverage and the associated threat of multiple credit rating downgrades for the cable operator. But, on the other hand, they realised the company would still need to raise additional debt – albeit less than for an LBO – to pay the proposed dividend.