Suddenlink plans near $1.76 billion in new debt for purchase by Altice

By Sara Rosenberg

New York, May 20 – Suddenlink Communications expects to issue $1,755,000,000 in new debt and keep $5,063,000,000 in existing debt to help fund its acquisition by Altice SA, company officials disclosed in a conference call on Wednesday.

The debt issuance at Suddenlink will remain ring-fenced from the existing indentures currently in place within Altice so that Suddenlink will not be restricted under those indentures, a news release said.

Under the agreement, 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.

Total leverage including full synergies will be 6.1 times 2014 EBITDA.

J.P. Morgan Securities LLC, PJT Partners and BNP Paribas Securities Corp. acted as financial advisors to Altice.

Suddenlink is a St. Louis-based cable operator. Altice is a Luxembourg-based cable and telecommunications company.

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