Altice USA/Optimum: The B-6 Domino Falls
Davis Hebert, CFA - Co-Head HY Research, Head of Telecom/Media, CreditSights
Jessica Reiss, J.D. - Head of U.S. Loans Research, CreditSights
Savannah Buzzeo - Analyst, Telecom / Media, CreditSights
26 November 2025
Insights into Altice USA/Optimum: The B-6 Domino Falls, including:
- Critical Debt Restructuring Moves: Explore how Altice USA’s repayment of the $1.95 billion TLB-6 with new Unsub Term Loan B proceeds sets the stage for aggressive liability management exercises and potential future restructurings.
- Covenant Flexibility Unlocked: Learn why the fall of the B-6 tranche allows Altice USA to regain flexibility for asset transfers, drop-down transactions, and uptiering, increasing risk for remaining creditors.
- Market Reaction & Valuation Trends: Analyze the market response including significant bond price declines and distressed trading levels across the capital structure.
- Legal Tensions and Next Steps: Understand the implications of Altice USA’s antitrust lawsuit against cooperating financial institutions and what it signals for future creditor negotiations.
- Capital Structure and Relative Value: Gain insights into Altice USA’s current capital stack, leverage, and relative value opportunities.
Executive Summary
- TLB-6 domino falls, with more to come on likely aggressive LME. Optimum Communications (f/k/a Altice USA) disclosed via an 8-K filing that it plans to repay the $1.95 billion TLB-6 (boxed in the capital structure table below) issued at CSC Holdings, LLC, with proceeds from a new $2 billion Unsub Term Loan B due November 2028. On top of that, the company also disclosed that it filed an antitrust lawsuit against financial institutions in the cooperation agreement (which we understand comprises 90%+ of lender/bondholders) for “conspiring to obstruct our efforts to manage our debt.”
- CreditSights Reaction. We believe this move was widely anticipated by the market since the company raised new money from a so-called ABS in July. We believe levels reflect the distressed scenario in the capital structure but may not fully reflect just how aggressive the company is willing to get to further impair debt and capture discount.
- Covenant Review Reaction. With the B-6 out of the picture, the company regains flexibility as it relates to transfer material IP to an Unsub, asset sale capacity and uptiering transactions, among other things. The “drop-down” type of transactions are part of Patrick Drahi & Co.’s playbook and creditors should be wary of his next move.
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