Altice International - comment

While we could write a morning mail every day on Altice France and the various press articles, the refinancing need trumps all speculation.  In apparent anticipation of that Altice is putting its stronger assets on a more stable footing. International have launched a new Term Loan B that will have the same terms as the Amended & Extended Term Loans from late 2022, namely October 2027 maturity with € +500bps coupon.  The Use of Proceeds are to take out the upcoming €600m 2.25% January 2025 bonds, leaving minimal maturities prior to 2027.  The deal launched this morning with a call to be held at 11 a.m. UK time tomorrow, Thursday.  Commitments are due by 1 p.m. on Monday, 2nd October.  

This deal is well flagged and in most people’s models and assumptions.  Net Leverage will not change with the transaction and leaves a maturity wall in 2027, with Term Loans maturing in 2027, followed by senior bonds in 2028 and 2029.  In addition, the Substructure matures in 2028 meaning the total structure needs refinancing in 2026.  This deal allows Altice International headway until then.