Moody’s rates Altice notes B2

Moody's Investors Service said it 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 SA, the borrowing entity of Altice International Sarl, a subsidiary of Altice Luxembourg SA. The outlook is negative.

Proceeds will be used to fully redeem the $400 million senior unsecured notes maturing in 2024 issued by Altice Finco SA and the $2.06 billion and €500 million senior secured notes maturing in 2023 issued by Altice Financing SA.

Altice International also indicated it plans to use some of the available cash to repay €250 million senior unsecured notes due in 2023 issued by Altice Finco

“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,” said Ernesto Bisagno, a Moody's vice president, senior credit officer and lead analyst for Altice, in a press release.

“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,” he said.

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