Ratings agency Moody’s has assigned a provisional B3 rating to Altice’s proposed €4.15bn notes issue, saying it reflects their subordination to some of the company’s other debt.
It also gave a (P)B1 rating to Altice.
The telecoms holding will use the…
Ratings agency Moody’s has assigned a provisional B3 rating to Altice’s proposed €4.15bn notes issue, saying it reflects their subordination to some of the company’s other debt.
It also gave a (P)B1 rating to Altice.
The telecoms holding will use the proceeds to subscribe to shares in a planned rights issue at its cable unit Numericable. Additional financing will come from a €570m capital increase.
Altice and Numericable recently agreed to buy mobile operator SFR for €13.5bn in cash. The financing includes an €11.64bn debt package at the operating companies’ level and a €4.7bn capital increase at Numericable.
Altice will subscribe pro rata (74.6%) to the rights issue, spending €3.53bn. The remaining proceeds from Altice’s own capital raise and €4.15bn notes will go towards refinancing some of its existing margins loans (€330m), buying an additional stake in Numericable from PE investors Carlyle and Cinven (€530m), for an interest overfund (€250m), and transaction costs (€80m).
Last weekend, SFR’s parent Vivendi decided to sell the mobile operator to Altice in a deal valuing the mobile unit at up to €17bn.
Separately, Altice also agreed to acquire Carlyle’s 21.32% Numericable stake as well as Cinven’s 13.27% stake for a total consideration of €1.3bn. Around €530m of this will be paid in cash, the remaining €800m in Altice shares.
