Altice/Suddenlink guiding $1.5 billion 10-year secured notes at 5½%; deal could grow by $1 billion

By Paul A. Harris

Portland, Ore., April 19 – Altice-Cequel/Suddenlink plans to shop a $1.5 billion offering of 10-year senior secured notes (existing ratings Ba3/BB-) on a conference call scheduled to get underway at noon ET on Tuesday, according to market sources.

The deal, which is in the market via issuer Altice US Finance I Corp., is expected to price late Tuesday.

The market is hearing early yield guidance of 5½%, and the deal could grow in size by $1 billion, sources add.

The J.P. Morgan Securities LLC, Barclays, BNP Paribas, Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. and RBC Capital Markets are the joint bookrunners for the Rule 144A for life offering.

The notes come with five years of call protection.

Proceeds will be used to refinance bank debt. Should the deal grow in size, as expected, the additional proceeds would be used to refinance the Cequel 6 3/8% notes due 2021, a source said.

The new deal comes just one day after Altice Financing SA priced an upsized $2.75 billion (from $2.25 billion) issue of 10-year senior secured notes (B1/BB-) at par to yield 7½% in a quick-to-market Monday transaction.

Altice is a Luxembourg-based telecommunications and cable company.

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