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NEW YORK - Altice USA (NYSE:ATUS) has established and funded a $1 billion asset-backed term loan facility in partnership with Goldman Sachs and TPG Angelo Gordon, the company announced Thursday. According to InvestingPro data, this adds to the company’s existing $25.56 billion debt load, reflecting one of several challenges facing the telecom provider.
The loan facility is secured by receivables and network assets from the company’s Bronx and Brooklyn service areas, primarily its Hybrid-Fiber Coaxial network. The facility matures in January 2031 and carries a fixed coupon of 8.875%.
Dennis Mathew, Altice USA Chairman and Chief Executive Officer, called the transaction "a milestone in infrastructure-backed financing" as it securitizes parts of the company’s HFC network.
In the Bronx and Brooklyn areas, Altice USA operates under its Optimum brand, spanning approximately 1.55 million locations and serving about 695,000 subscribers. Across its entire footprint, Optimum passes nearly 10 million locations with more than 4 million subscribers. The company generates annual revenue of $8.86 billion, though InvestingPro analysis shows current liquidity challenges with a current ratio of 0.36.
The loan agreement allows Altice USA to incur additional debt secured by the same assets if certain conditions are met, according to the press release statement.
Altice USA provides broadband, video, mobile, and advertising services across 21 states through its Optimum brand. The company also operates News 12, which delivers hyperlocal news content, and Optimum Media, an advanced advertising and data business. Despite current challenges, analysts tracked by InvestingPro expect the company to return to profitability this year, with projected earnings of $0.22 per share. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.
Ropes & Gray served as legal counsel to Altice USA, while King & Spalding and Milbank represented Goldman Sachs Bank USA, and Latham & Watkins acted for TPG Angelo Gordon.
In other recent news, Altice USA reported its first-quarter 2025 earnings, which fell short of Wall Street expectations. The company announced an earnings per share (EPS) of -$0.16, missing the forecasted -$0.08, while revenue came in at $2.15 billion, slightly below the expected $2.16 billion. Despite these misses, Altice USA outlined strategic initiatives and improvements in gross margin, which expanded to 68.8%, a 180 basis point increase year-over-year. In another development, Altice USA’s shareholders approved the election of all nine director nominees and ratified the appointment of KPMG LLP as the independent auditor for fiscal year 2025. The shareholders also approved executive compensation on an advisory basis and endorsed the frequency of future votes on executive pay. Additionally, Altice USA’s subsidiary, Cablevision Funding LLC, entered into a $1 billion loan agreement secured by assets in the Bronx and Brooklyn, with Goldman Sachs Bank USA and TPG Angelo Gordon as initial lenders. This loan is intended to support working capital, prepayment of existing debt, and other corporate purposes.
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