Altice France caught the eye of the markets with its unprecedented, and aggressive, use of liability management exercises (LMEs) when attempting to cut leverage from over 6x to 4x. 

Traditionally, aggressive financial transactions have been seen as an exclusively US tactic. However, LMEs appear to be gradually making their way into European markets. Although ‘gradual’ may not be the best way to describe the Altice France transaction for there was nothing moderate about group’s owner’s, Patrick Drahi, announcement during the Q4 23 earnings call in March 2024 that the company would delever to below 4x by forcing creditors to accept discounted transactions.

Adopting the "ask for forgiveness, not permission" principle, Drahi pursued an aggressive strategy, moving collateral out of the restricted group and demanding severe creditor haircuts while refusing to dilute his own shareholding. Though he didn't achieve all his objectives, the Altice France restructuring adds yet another weight in favour of the use of LMEs in Europe. 

Just how many more weights are necessary before the scales begin to tip?