Altice USA gives early results in exchange for Altice, Cequel notes

By Wendy Van Sickle

Columbus, Ohio, Oct. 16 – Altice USA, Inc. announced the early results of an exchange offer and consent solicitation for six series of notes, according to a press release Tuesday evening.

The offers were announced on Oct. 2 in relation to Altice’s intention to simplify its structure and operations by combining the Suddenlink (Cequel) and Optimum (Cablevision) businesses under a single credit silo, Altice US Finance I Corp.

As of the early deadline, 5 p.m. ET on Oct. 16, $5.48 billion, or 99.23% of the original notes had been tendered for exchange, according to Tuesday’s update.

The following notes had been tendered:

• $1,095,493,000, or 99.59%, of the $1.1 billion of 5 3/8% senior secured notes of Altice US Finance I Corp. due 2023;

• $1,493,432,000, or 99.56%, of the $1.5 billion of 5½% senior secured notes Altice US Finance I Corp. due 2026;

• $739,279,000, or 98.57%, of the $750 million of 5 1/8% senior notes of Cequel Communications Holdings I, LLC and Cequel Capital Corp. due 2021;

• $492,899,000, or 98.58%, of the $500 million of 5 1/8% senior notes of Cequel Communications Holdings I, LLC and Cequel Capital Corp. due 2021;

• $610,698,000, or 98.5%, of the $620 million of 7¾% senior notes of Cequel Communications Holdings I, LLC and Cequel Capital Corp. due 2025; and

• $1,045,443,000, or 99.57%, of the $1.05 billion of 7½% senior notes of Cequel Communications Holdings I, LLC and Cequel Capital Corp. due 2028.

Each series of notes will be exchanged for new notes of the issuer with the same maturity and coupon as the original notes.

The total consideration per $1,000 principal amount payable to holders who participated by the early deadline will be:

• $1,000 of new notes plus at least $2.50 in cash for the 5 3/8% 2023 notes;

• $1,000 of new notes plus at least $2.50 in cash for the 5½% 2026 notes;

• $1,000 of new notes for each series of 5 1/8% 2021 notes;

• $1,000 of new notes for the 7¾% 2025 notes; and

• $1,000 of new notes for the 7½% 2028 notes.

For the cash consideration of the 2023 and 2026 notes, $2.75 million and $3.75 million will be payable on a pro rata basis on the first exchange date to eligible participating holders of the 2023 and 2026 notes, respectively, who participated by the early deadline.

For each series, holders who participate in the exchange after the early deadline will receive only $950 of new notes.

In each case the new notes will convert automatically into new senior guaranteed and senior notes of CSC Holdings, LLC upon satisfaction of some conditions, including the consummation of the planned combination.

The 2023 and 2026 notes each had a minimum tender condition of 50%, each of which has been satisfied.

In the case of the 2023, 2026, 2025 and 2028 original notes, the issuer was also seeking consents to make some amendments to the note indentures. The requisite consents were received by the early deadline, and the proposed amendments will only become operative immediately prior to the occurrence of the combination on the combination date, according to the update.

Holders of the original notes will not receive any cash interest payment in respect of accrued and unpaid interest on any exchange date.

The issuer is expected to issue new senior secured notes and the senior notes co-issuers to issue new senior notes within two business days of the early participation date.

The offer will expire at 11:59 p.m. ET on Oct. 30.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or altice@lucid-is.com) is the information and exchange agent.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-1862) and Goldman Sachs & Co. LLC (800 828-3182 or 212 357-1452) are the joint dealer managers.

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