Bernstein sees TI’s likely price hike benefiting Infineon, Renesas stock
Investing.com -- S&P Global Ratings downgraded France-based telecommunications operator Altice France S.A. to ’D’ (default) from ’CC’ after the company entered accelerated safeguard proceedings.
On Monday, Altice France announced it had entered the proceedings after obtaining lender support for a restructuring plan of its senior secured capital structure. A French court validated the opening of the safeguard procedure the same day.
The proceedings trigger a stay on Altice France’s financial obligations, including senior secured notes, term loans B, and the revolving credit facility (RCF). This means interest payments on senior secured debt and the July 2025 term loan maturities will not be allowed during this period.
S&P considers the default on all senior secured debt issued by Altice France as "a virtual certainty" because the company will fail to pay obligations as they come due during the procedure.
The restructuring plan, if approved by the court, is expected to be completed by October 2025. The plan includes cash payments of approximately €1.5 billion for existing senior secured lenders and about €100 million for existing unsecured lenders, a debt-to-equity swap, and €14.7 billion in new senior secured debt instruments with higher coupon and extended maturity. Additionally, about €900 million in new unsecured debt instruments will be issued, and the €1.2 billion RCF will receive a five-year maturity extension.
S&P plans to maintain the ’D’ rating on both Altice France S.A. and Altice France Holding S.A. until the restructuring plan is fully implemented. After completion, S&P will review the ratings based on the group’s new capital structure, liquidity position, and forward-looking credit profile.
The rating agency will focus on the company’s ability to improve operations in the competitive French market, its forecast trajectory of free operating cash flow after leases, and S&P’s updated view of the group’s governance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.