Altice International - comment

Altice International has commenced its financial restructuring by raising €750m at Altice Portugal S.A. This was enabled by Altice International designating Altice Portugal S.A. (the entity holding substantially all of Altice International’s operations in Portugal) and Altice Caribbean S.à r.l. (the entity holding substantially all operations in the Dominican Republic) as unrestricted subsidiaries under the instruments governing Altice International’s indebtedness. It appears that Altice Caribbean has now been moved outside the Group and is directly held by Altice Group Lix S.à r.l.

This represents a drop-down transaction that transfers most of the assets, excluding the Israeli assets, into unrestricted subsidiaries. The proceeds from the additional debt raised at these newly designated entities may be used to fund a tender offer for the outstanding Altice International debt. Negotiations continue with an ad hoc group of secured creditors represented by Gibson Dunn and Houlihan Lokey under a cooperation agreement. It is reported that 90% of the secured creditors are part of this ad hoc group.