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Caribbean Trader
Rating Action:
Moody's assigns B2 ratings to Altice International's new notes; outlook negative
09 Jan 2020
Milan, January 09, 2020 -- Moody's Investors Service, ("Moody's") has today assigned B2 ratings to the proposed €2.75 billion-equivalent notes, including €600 million notes maturing in 2025, €1.1 billion notes and $1.2 billion notes both maturing in 2028, to be issued by Altice Financing S.A., the borrowing entity of Altice International S.a.r.l. ("Altice International"), a subsidiary of Altice Luxembourg S.A. ("Altice Luxembourg" or the group). The outlook is negative.
Proceeds from this debt issuance will be used to fully redeem the $400 million senior unsecured notes maturing in 2024 issued by Altice Finco S.A. and the $2.06 billion and €500 million senior secured notes maturing in 2023 issued by Altice Financing S.A.
In addition Altice International indicated it plans to use some of the available cash to repay €250 million senior unsecured notes due in 2023 issued by Altice Finco S.A.
"The refinancing will extend Altice International's debt maturity profile to 6.9 years from 5.4 years at Altice Luxembourg level. Moreover, the refinancing will bring substantial interest savings of around €150 million which will support cash-flow generation from 2020 onwards," says Ernesto Bisagno, a Moody's VP-Senior Credit Officer and lead analyst for Altice.
"However, the refinancing is broadly leverage neutral, as we expect Altice International's Moody's-adjusted leverage to remain high at around 5.9x in 2020, barring any debt reduction coming from proceeds from asset disposals," adds Mr Bisagno.
A full list of affected ratings is provided towards the end of the press release.
Moody's assigns B2 ratings to Altice International's new notes; outlook negative
09 Jan 2020
Milan, January 09, 2020 -- Moody's Investors Service, ("Moody's") has today assigned B2 ratings to the proposed €2.75 billion-equivalent notes, including €600 million notes maturing in 2025, €1.1 billion notes and $1.2 billion notes both maturing in 2028, to be issued by Altice Financing S.A., the borrowing entity of Altice International S.a.r.l. ("Altice International"), a subsidiary of Altice Luxembourg S.A. ("Altice Luxembourg" or the group). The outlook is negative.
Proceeds from this debt issuance will be used to fully redeem the $400 million senior unsecured notes maturing in 2024 issued by Altice Finco S.A. and the $2.06 billion and €500 million senior secured notes maturing in 2023 issued by Altice Financing S.A.
In addition Altice International indicated it plans to use some of the available cash to repay €250 million senior unsecured notes due in 2023 issued by Altice Finco S.A.
"The refinancing will extend Altice International's debt maturity profile to 6.9 years from 5.4 years at Altice Luxembourg level. Moreover, the refinancing will bring substantial interest savings of around €150 million which will support cash-flow generation from 2020 onwards," says Ernesto Bisagno, a Moody's VP-Senior Credit Officer and lead analyst for Altice.
"However, the refinancing is broadly leverage neutral, as we expect Altice International's Moody's-adjusted leverage to remain high at around 5.9x in 2020, barring any debt reduction coming from proceeds from asset disposals," adds Mr Bisagno.
A full list of affected ratings is provided towards the end of the press release.
