Altice is finalising a three-part transaction to refinance part of its debt and achieve a simpler capital structure through the removal of Altice Luxembourg HoldCo, a subsidiary of holding company Altice Luxembourg. As announced last year, the group plans to refinance most of its debt on better terms over a two-year period, with a target of EUR 700 million annual cash interest savings. So far, it has achieved EUR 363 million in savings on a pro forma basis, out of its EUR 700 million objective.
In this latest transaction, Altice has successfully priced and allocated new senior notes worth EUR 2.1 billion at its Altice France subsidiary. Out of this total, EUR 1.6 billion worth of eight-year notes will mature in January 2028 with a weighted average cost of 4.0 percent. EUR 500 million of five-year notes will mature in January 2025 with an average cost of 2.1 percent, representing the lowest coupon ever raised by Altice.
The annual interest savings from this transaction amount to EUR 36 million on a pro forma basis, said the company, adding that the average maturity of its debt capital structure has been extended from 6.0 to 6.6 years. As a result, Altice Europe has no major maturities before 2025 and the weighted average cost of its debt has decreased from 5.4 to 5.0 percent.
As part of the transaction, the group is also set to move senior notes from Altice Luxembourg to Altice France, in an exchange operation that will leave the characteristics of the notes unchanged.
