Article/Intelligence
Altice France Approaches Creditors to Gauge Viability of LME
Altice France is reaching out to its secured and unsecured creditors via advisor JPMorgan to gauge the viability of a potential liability management exercise, according to sources.
The telecom company sought to better understand creditor group dynamics including cooperation agreements and what kind of deals its creditors would be open to, the sources said.
Some creditors directed the company’s advisor to Rothschild, investment banker for an ad hoc group of creditors represented by Gibson Dunn, they added. More than 90% of term lenders and over 75% of secured noteholders have formed a united front to negotiate with the company and avoid creditor-on-creditor violence.
The development represents another step toward a potential LME after Altice France started to explore options to reduce net leverage to below 4x, which would provide it with about a 1.5x equity cushion based on Reorg’s estimated 5.5x enterprise value multiple for the group.
Separately, another cooperation agreement initiated by Milbank, Houlihan Lokey and Willkie Farr has recently garnered signups from just over 50% of the company’s unsecured noteholders, according to sources.
The company said in its first-quarter report that it retained Lazard and JPMorgan as advisors to provide or arrange financing and assist in the evaluation of liability management alternatives.
|
03/31/2024
|
EBITDA Multiple
|
|||
|---|---|---|---|---|
|
(EUR in Millions)
|
Amount
|
Maturity
|
Rate
|
Book
|
|
€550M Senior Secured Notes 2025 1
|
329.0
|
Dec-2024
|
2.500%
|
|
|
€500M Senior Secured Notes 2025 2
|
381.0
|
Jan-2025
|
2.125%
|
|
|
€1B Senior Secured Notes 2027
|
1,000.0
|
Jan-2027
|
5.875%
|
|
|
New €350M Senior Secured Notes 2027 3
|
350.0
|
Feb-01-2027
|
11.500%
|
|
|
€1BM Senior Secured Notes 2028
|
1,000.0
|
Dec-2027
|
3.375%
|
|
|
€500M Senior Secured Notes 2029
|
500.0
|
Dec-2028
|
4.125%
|
|
|
€400M Senior Secured Notes 2029
|
400.0
|
Jun-2029
|
4.000%
|
|
|
€800M Senior Secured Notes 2029
|
800.0
|
Sep-2029
|
4.250%
|
|
|
$1.75B Senior Secured Notes 2027
|
1,622.0
|
Jan-2027
|
8.125%
|
|
|
$1.1B Senior Secured Notes 2028
|
1,020.0
|
Dec-2027
|
5.500%
|
|
|
$475M Senior Secured Notes 2029
|
440.0
|
Dec-2028
|
5.125%
|
|
|
$2.5B Senior Secured Notes 2029
|
2,317.0
|
Jun-2029
|
5.125%
|
|
|
$2B Senior Secured Notes 2029
|
1,854.0
|
Sep-2029
|
5.500%
|
|
|
$1.342B Term Loan 2025 4
|
326.0
|
Jun-2025
|
USD LIBOR + 2.750%
|
|
|
$2.043B Term Loan 2026 4
|
505.0
|
Dec-2025
|
USD LIBOR + 3.688%
|
|
|
$2.4B Term Loan 2026 4
|
536.0
|
Jul-2026
|
USD LIBOR + 4.000%
|
|
|
$4.3B Term Loan 2028 4
|
3,937.0
|
Jul-2028
|
USD SOFR + 5.500%
|
|
|
€1.082B Term Loan 2025 4
|
205.0
|
Jun-2025
|
EURIBOR + 3.000%
|
|
|
€950M Term Loan 2026 4
|
245.0
|
Dec-2025
|
EURIBOR + 3.000%
|
|
|
€1.7B Term Loan 2028 4
|
1,709.0
|
Jul-2028
|
EURIBOR + 5.500%
|
|
|
€1B Revolving Credit Facility 2028
|
698.0
|
Dec-2027
|
EURIBOR + 3.250%
|
|
|
€175M Revolving Credit Facility 2026 5
|
–
|
Mar-2026
|
EURIBOR + 4.250%
|
|
|
Other debt
|
40.0
|
|||
|
Total Secured Debt
|
20,214.0
|
5.7x
|
||
|
€1.317B Altice Lux Exchange Senior Notes 2027 6
|
1,317.0
|
Apr-2027
|
8.000%
|
|
|
€500M Senior Notes 2028 6
|
500.0
|
Jan-2028
|
4.000%
|
|
|
$1.562B Altice Lux Exchange Senior Notes 2027 6
|
1,448.0
|
Apr-2027
|
10.500%
|
|
|
$1.225B Senior Notes 2028 6
|
1,019.0
|
Jan-2028
|
6.000%
|
|
|
Total Senior Debt
|
4,284.0
|
6.9x
|
||
|
Total Debt
|
24,498.0
|
6.9x
|
||
|
Less: Cash and Equivalents
|
(405.0)
|
|||
|
Net Debt
|
24,093.0
|
6.8x
|
||
|
Operating Metrics
|
||||
|
LTM Reported EBITDA
|
3,526.0
|
|||
|
LTM Reorg EBITDA
|
3,727.0
|
|||
|
Liquidity
|
||||
|
RCF Commitments
|
1,200.0
|
|||
|
Less: Drawn
|
(698.0)
|
|||
|
Plus: Cash and Equivalents
|
405.0
|
|||
|
Total Liquidity
|
907.0
|
|||
|
Credit Metrics
|
||||
|
Gross Leverage
|
6.9x
|
|||
|
Net Leverage
|
6.8x
|
|||
|
Notes:
EBITDA is pro forma for the sale of a 70% stake in UltraEdge and the sale of 100% of Altice Media. LTM Reported EBITDA is L2QA consolidated EBITDA LTM Reorg EBITDA figure is calculated directly from reported LTM EBITDA. Note Reorg excludes currency swap adjustments. 1. €62 million exchange offer and €109 million repurchase in cash. 2. €60 million exchange offer and €110 million repurchase in cash. 3. Privately placed notes. 4. Bank loans are amortisable at a rate of 0.25% of the nominal amount each quarter 5. Facility previously held at Altice France Holding, subsequently moved to the opco level. 6. These notes are held at the Altice France Holdco SA level so sit outside the Altice France S.A. restricted group Pro Forma: Pro forma for the deferred consideration of €65 million, expected to be paid in 2024, related to the acquisition of Coriolis. |
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Altice France, JPMorgan and Rothschild did not respond to requests for comment.
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