News and Analysis
Altice secured creditors prepare cooperation agreement
- Rachel Butt
- +Max Frumes
•2 min read
A group of Altice France’s secured creditors are in talks to form a cooperation agreement, which would bind them to act together in potential talks with the struggling telecoms company, according to 9fin sources.
The participants in the co-op agreement talks are part of a creditor group that recently formed with Gibson Dunn as legal counsel. Holders of nearly $12bn worth of Altice France secured debt have agreed to join a co-op so far, representing more than two-thirds of the group itself, according to a source.
As well as looking into a co-op agreement, this creditor group is also considering bringing on PJT Partners as a financial advisor, the sources said.
Investors across Altice’s debt stack were rattled last month after executives said creditors would have to help the company reduce its leverage. This statement led the company’s bonds to sell off and prompted creditors to hunt for advisors.
That statement by executives came after Altice France designated Altice Media as an unrestricted subsidiary, and agreed to sell that unit and some of its data centers for €2.1bn.
The unrestricted subsidiary designation gives Altice France full flexibility as to what to do with proceeds from the Altice Media sale — meaning they don’t necessarily have to be used to pay down debt (read more on the implications here).
Quotes on Altice France’s €350m 11.5% SSNs due 2027 have since edged up to around 86, from 83.5 on 29 March. Over the same period, the company’s €500m 4% SUNs due 2028 went to 25.25 from 23.
The company’s largest US dollar bonds, the $2.5bn 5.125% SSNs due 2029, are quoted at around 67, down about a point since 29 March.
Representatives at Altice, Gibson Dunn and PJT didn’t respond to requests for comment.
For more on the latest news at Altice, check out our insights page.
