Fitch puts Cablevision on negative watch

Fitch Ratings said it placed the BB- issuer default rating for Cablevision Systems Corp. and wholly owned subsidiary CSC Holdings, LLC on Rating Watch negative.

The negative watch follows a Sept. 17 announcement by Altice NV that it will acquire Cablevision for $34.90 per share or about $17.7 billion, including $8.4 billion of existing debt, Fitch said.

The transaction is expected to close in the first half of 2016 after all necessary regulatory approvals are obtained, the agency said.

Cablevision shareholders have approved the transaction, Fitch said, and the transaction is not subject to further shareholder approval.

Cablevision will become an unrestricted subsidiary of Altice and will maintain a separate capital structure, the agency said.

This transaction will represent Altice's second acquisition of a U.S. cable operator this year, Fitch said.

The purchase will be funded with $6.7 billion of new and existing Suddenlink debt, a $500 million vendor loan note from BC Partners and CPP Investment Board and $1.2 billion of cash, the agency said.

The negative watch will focus on the financing of the transaction, the issuing entities of the incremental debt and the viability of the potential synergies, among other factors, Fitch said.

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