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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.

Altice France – Pro Forma as of 03/31/2024
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.

Altice France, JPMorgan and Rothschild did not respond to requests for comment.