Altice France: Frequently Asked Questions in Light of the Q4 2023 Earnings Call (Bonds Edition)

On yesterday’s earnings call, Altice France’s advisor, Dennis Okhuijsen, raised the hackles of market participants when he indicated not only that “creditor participation” in discounted transactions, like exchanges or tenders, was an option in Altice France’s quest to delever. Adding fuel to the fire, against the backdrop of several chunky announced and anticipated asset disposals (including of Unrestricted Subsidiaries, Altice Media and XpFibre), he also stated that “As people see us selling assets, they should not think we are using the asset sales one–by–one to buy back debt…We are going to see it as one overall solution.” With bond prices plummeting, subscribers are seeking clarity on what, exactly, Altice France could do under its bond covenants.

In this report, we answer frequently asked questions in light of recent Altice France reports. This is intended as a quick–reference overview to address subscriber concerns in the near–term, and we will supplement and update our detailed research as news develops.

CAPTIAL STRUCTURE

Altice France S.A. (the “Company” or “Altice France”) has the following senior secured notes outstanding (the “SSNs”):

• €380.7 million of 2.5% Senior Secured Notes due 2025 (the “January 2025 SSNs”),
• €1 billion of 5.875% Senior Secured Notes due 2027 and $1.75 billion of 8.125% Senior Secured Notes due 2027 (the “2027 SSNs”),
• €1 billion of 3.375% Senior Secured Notes due 2028 and $1.1 billion of 5.5% Senior Secured Notes due 2028 (the “2028 SSNs”),
• €328.6 million of 2.125% Senior Secured Notes due 2025 (the “February 2025 SSNs”),
• €500 million of 4.125% Senior Secured Notes due 2029 and $475 million of 5.125% Senior Secured Notes due 2029 (the “January 2029 SSNs”),
• €400 million of 4% Senior Secured Notes due 2029 and $2.5 billion of 5.125% Senior Secured Notes due 2029 (the “July 2029 SSNs”), and
• €800 million of 4.25% Senior Secured Notes due 2029 and $2 billion of 5.5% Senior Secured Notes due 2029 (the “October 2029 SSNs”).

The Company also priced €350 million of privately placed 11.5%senior secured notes due 2027 last December. Wedo not address the covenants of these private notes in this report.