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Capital and Legal Structure 30/09/22
Industry and Company 30/09/22
Inflation and Cashflow 30/09/22
Investment Discussion 30/09/22
Altice creditors have recommenced discussions with the Company, with senior lenders laying down some red lines for future negotiations. Senior lenders, advised by
S&P have downgraded Altice France to CCC, due to the risk of a distressed exchange of the bonds is increasing. We see a distressed
Becoming uncomfortably normal, SFR France held a curtailed conference call post their numbers, again not allowing any questions. The guidance for
Clarity isn’t Altice’s forte and further muddying of the numbers in Altice International’s Q3 release. Altice International have divested/moved the
Our initial view is the differences between the Company and Ad-hoc proposals are not that far apart (details below) and a deal should be
It is reported that the Company has started confidential discussions with Senior lenders. The company is proposing several versions, including partial debt
The opening bell of negotiations between Drahi and creditors has rung, with the Company/Drahi floating a proposal to the steering creditor committee. The proposal appears
The opening bell of negotiations between Drahi and creditors has rung, with the Company/Drahi floating a proposal to the steering creditor
Further speculation and press stories are emerging regarding Altice France. It is rumoured that Altice France is exploring potential debt raising at
Please find our updated model here.
We continue to see value in Altice International bonds, and despite the obvious tainting from related Altice entities, Altice International remains a
While most of us try to imagine the future capital structure and which creditor class will take a haircut (answer all!), the underlying business continues to
As always, plusses and minuses when it comes to the Altice story. On the plus side, management was very clear that the proceeds from the Teads sale would be
Altice UK have agreed to sell its 24.5% BT stake to Bharti Enterprises, initially selling 9.99% immediately and subsequently the balance, once regulatory approval is
Please find a short note post Altice International’s sale of Teads to Outbrain Inc. We will update our models after the Q2 results, released on Thursday, August 29th.
Ultimately this is a better valuation and cash proceeds than we had envisaged. Valuations have always fluctuated for the Teads business, with
The $725m of cash from the Teads sale will help de-leverage Altice International and is a positive for bondholders. The deal also
The FT have published some vague details on Altice’s financing concerning its stake in BT. Drahi’s stake is worth c. £3.5bn and the FT are reporting
Although potentially positive for Altice International, the failed sale of Altice Portugal will be viewed as negative for Altice France. This further reduces the
Press reports from Portugal indicate the sales process of Altice Portugal has ended, due to price. This is disappointing news for the wider Altice Group and
Please find our updated analysis post their Q1 results.
In March, we expected no update from Atlice SFR about their capital structure/deleveraging plans. Our only expectation was further deterioration in
Moody’s downgraded Altice International yesterday to Caa1, from B3 on the Secured and Caa3 from Caa2 for the unsecured bonds, with outlook on all entities changing to
Please find our updated model here.
But does the financials and the model matter? The last comment from the management on the call is probably the most important one stating
Management may state that Altice International is a “completely different entity" to Altice SFR and they look forward to “normalised trading levels”. The reality is
Headlines are going to focus on restricted versus unrestricted entities, our initial comments are on operations. We had suspected the poor guidance issued
Bloomberg are reporting that SocGen were unable to sell its RCF as bids came in lower than its 70% reserve. The movement in the RCF down to the operations does not
Altice International and Altice SFR are reporting next Tuesday at 1 pm and 4 pm respectively. There will be a lot to digest on both calls, but specifically at Altice SFR with
S&P downgraded Altice International on Friday to B- with a negative outlook, citing the higher interest burden due to underlying rates, the impact of the
Please find our updated analysis post FY23 results here.
How the world has changed since September. The Company have struck a more aggressive tone suggesting deleveraging from creditor participation in
Please find our updated model here.
Altice International reported its Q4 and FY23 numbers which were broadly in line with our expectations. The business continues to show its resilience and
In line with management’s comments, all assets are for sale. As part of the process, it is reported that Altice has appointed Morgan Stanley to
Please find our updated model here.
The performance of Altice International bonds will be determined in two distinct areas - operational performance and structural considerations. Although there are likely to be increased competitive pressures in the Portuguese operations, we retain our new