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Altice OpCo And HoldCo Bonds Diverge As Company Aims To Unrestrict Units From Covenants

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  • BBG sources reporting Altice has attempted to free some of its subsidiaries from debt covenants as per disclosures on an investor portal (and as it previously did with Altice Media and Ultraedge), raising fear of worse collateral claims and that the proceeds from capital raises or sales may not be used to pay down borrowings.
  • A Moody’s report notes that Altice has been able to move these assets due to looser-than-standard buildup basket rules that accumulates credit based on cumulative EBITDA minus a multiple of interest expense and that was back-dated by nearly a decade without the requirement to satisfy any financial ratios.
  • SFRFP 5 7/8 02/01/27 issued out of the Altice France OpCo is EUR 1.15 cheaper at EUR 71.71 while SFRFP 8 05/15/27 issued out of Altice France HoldCo is EUR 0.5 richer at EUR 31.70. Altice International bonds have cheapened in line with the OpCo.
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  • BBG sources reporting Altice has attempted to free some of its subsidiaries from debt covenants as per disclosures on an investor portal (and as it previously did with Altice Media and Ultraedge), raising fear of worse collateral claims and that the proceeds from capital raises or sales may not be used to pay down borrowings.
  • A Moody’s report notes that Altice has been able to move these assets due to looser-than-standard buildup basket rules that accumulates credit based on cumulative EBITDA minus a multiple of interest expense and that was back-dated by nearly a decade without the requirement to satisfy any financial ratios.
  • SFRFP 5 7/8 02/01/27 issued out of the Altice France OpCo is EUR 1.15 cheaper at EUR 71.71 while SFRFP 8 05/15/27 issued out of Altice France HoldCo is EUR 0.5 richer at EUR 31.70. Altice International bonds have cheapened in line with the OpCo.