Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMUNICATIONS SECTOR
- S&P have today released a bulletin indicating that they do not view Altice France’s most recent bond issuance as materially weakening its rating outlook but rather as supportive of its liquidity profile.
- Altice France issued a €350mn senior secured 2027 note on 19 Dec to partially refinance €1.05bn in notes maturing in early 2025.
- Despite a higher margin on the new debt impacting the ICR, S&P expects the ICR to stay above 2x post-refinancing while gross debt should remain constant.
- The company's liquidity is deemed adequate through Q1 2025, backed by this supply, data center sale proceeds, existing cash balances and revolving credit facility access (Q3 results shows €1.1bn in liquidity of which €300mn was cash and €800mn RCFs)
- S&P note continued negative cash flow post-leases and EUR 540 million in further maturities due in July 2025 and note that the focus remains on whether Altice France can achieve a 1x deleverage by Q324.
- Altice France (B2[N]/N-[S]) bonds trade wide of Altice International (B3[S]/B[S]) as shown for EUR bonds in the below RV chart (where the French entity is blue and the International entity is Orange). The same holds true for dollar bonds, reflecting underlying differences in credit metrics.
- At Q3, Altice France had net debt of €24bn vs. pro-forma net debt of €8.7bn at Altice International translating to EBITDA leverage ratios of 6x and 4.6x respectively. Altice International also benefits from a more gradual maturity profile as is visible on the chart.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok