Altice Europe has announced a three-part transaction to significantly simplify the group capital structure via the removal of Altice Luxembourg HoldCo. This will result in a group capital structure with two distinct, diversified funding pools: Altice France and Altice International. Altice Europe chief financial officer Malo Corbin said: ‘The simplification of the group capital structure has been a long-standing objective for the group and as such this transaction is a key milestone.’
Global Capital writes that Altice France will tender a EUR500 million (USD554 million) five-year senior secured issue, plus EUR1.6 billion-equivalent of eight-year unsecured notes from a subsidiary of Altice France, known as Ypso Finance BIS. These will partially refinance 2025 notes issued by group holding company Altice Luxembourg. Altice is also offering to exchange Altice Luxembourg’s 2027 unsecured notes, totalling EUR2.867 billion, for debt of the subsidiary. Once issued, these unsecured notes – the new issue and the exchanged bonds – will be transferred to the newly created Altice France Holding, which will, according to the company, ‘achieve the long-standing structural objective of simplifying the group corporate structure.’
Currently, Altice Luxembourg is the holding company for Altice International – containing the Portuguese, Israeli and Dominican Republic businesses – and Altice France. After the second stage of the deal, which requires noteholder consent, Altice France and Altice International will be fully separate funding entities with their own layer of holding company debt.