Altice USA to Combine Suddenlink, Optimum Under Single Credit Silo

Says move will further simplify structure and operations of company.

October 2, 2018

1 Min Read

NEW YORK -- Following the initial public offering of Altice USA (“Altice USA”, NYSE: ATUS) and subsequent separation from Altice Europe NV (“Altice Europe NV”, Euronext: ATC ATCB), Altice USA has announced its intention to further simplify its structure and operations by combining (the “Combination”) the Suddenlink (Cequel) and Optimum (Cablevision) businesses under a single credit silo. The Combination is expected to be leverage neutral for Altice USA.

The Combination will mark a significant milestone in the integration of the Suddenlink and Optimum businesses and align Altice USA’s debt capital structure with the way Altice USA is managed: as a unified company with a common strategy. The Combination will result in a more diversified credit silo which is expected to simplify Altice USA’s financing strategy and financial reporting requirements. The Combination is expected to be effected mainly by the following transactions:

  • Exchange of existing Cequel senior secured and senior notes (the “Original Notes”) into new Cequel senior secured and senior notes (the “New Notes”) issued by the same issuers, which will automatically convert into new senior guaranteed and senior notes (the “New CSC Notes”) of CSC Holdings, LLC upon satisfaction of certain conditions, including the consummation of the Combination

    • Refinancing of existing Cequel Credit Facility with proceeds of a new Term Loan at CSC Holdings, LLC

      The closing of the Combination is subject to regulatory filings and approvals and other customary conditions, and Altice USA may decide not to proceed with the Combination at any time prior to its consummation.

      Altice USA

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