Altice Said to Consider Refinancing $11 Billion High-Yield Bonds
French telecom and media companyAltice Europe NV is considering refinancing about 9 billion euros ($11 billion) of high-yield debt, according to a person familiar with the matter.
The company indicated to investors that it may refinance a portion of its euro and U.S dollar-denominated bonds with 2021 call dates, said the person, who asked not to be identified because the information isn’t public.
Altice may be hoping totake advantage of current market conditions, with yields on junk bonds hovering at 11-month lows.
The company, owned by billionaire Patrick Drahi, is exploring options to tackle some of its costly bonds after an acquisition spree saw the company rack up the equivalent of around29 billion euros. Reducing the company’s cash-interest expense will form part of its restructuring plan, which involves taking the companyprivate.
Some of the bonds due to be called this year have coupons as high as 7.5%, Bloomberg data show.
The company was last in the bond market in September last year, raising the equivalent of$1.1 billion euros.
Credit-default swaps insuring Altice Luxembourg SA, the borrower’s holding company, have risen to a two-month high, according to data from CMA.
Source: Read Full Article