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Altice/Suddenlink set price talk in $1.72 billion three-part deal; pricing Friday
By Paul A. Harris
Portland, Ore., May 28 – Price talk surfaced Thursday in the $1.72 billion three-part high-yield bond financing backing Altice’s acquisition of a 70% stake in Suddenlink Communications, according to a market source.
The deal features three tranches from three different issuing entities.
Altice US Fin I Corp. talked its $1.1 billion of eight-year senior secured first-lien notes (B1/BB-) to yield 5¼% to 5½%. The first-lien notes become callable after three years at par plus 75% of the coupon.
In the holdco tranche, Altice US Fin II Corp. talked $300 million of 10-year senior unsecured notes (Caa1/B-) to yield in the 7¼% area. The holdco notes are non-callable for five years.
In the super holdco tranche, Altice US Fin SA talked $320 million of 10-year senior notes (Caa2/CCC+) with a coupon in the 7¼% area and to price at a discount to yield 7½%. The super holdco notes are also non-callable for five years.
Books close at 1 p.m. ET on Friday, and the Rule 144A and Regulation S for life notes are set to price thereafter.
J.P. Morgan Securities LLC and BNP Paribas are the underwriters.
Altice is buying 70% of the share capital in Suddenlink from existing shareholders BC Partners, CPP Investment Board and Suddenlink management. BC Partners and CPP Investment Board will retain a 30% stake in Suddenlink.
The acquisition values Suddenlink at an enterprise value of $9.1 billion.
Other funds for the transaction will come from $1,687,000,000 in equity, split between a $500 million vendor loan note from BC Partners and CPP Investment Board, and $1,187,000,000 of cash from Altice.
Closing is expected in the fourth quarter, subject to regulatory approvals.
Suddenlink is a St. Louis-based cable operator. Altice is a Luxembourg-based cable and telecommunications company.
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