Altice USA Announces Successful Pricing of New Term Loan

Rhea-AI Summary

Altice USA (NYSE: ATUS) announced the pricing and allocation of a new $2 billion 5-year Senior Secured Term Loan B by its subsidiary, CSC Holdings, LLC. This loan is part of an existing credit agreement effective from October 9, 2015. It aims to refinance existing loans from March 2017 and October 2018. The interest rate will be based on the Term SOFR rate plus a margin of 4.50%. Consequently, the average cost of debt for CSC will rise from 5.1% to 5.3%, extending the weighted average life of its debt from 5.8 to 6.0 years as of September 30, 2022.

Positive

• Successful pricing of a $2 billion Senior Secured Term Loan B.
• Loan proceeds will refinance existing higher-cost debt, potentially optimizing capital structure.

Negative

• Average cost of debt is increasing from 5.1% to 5.3%.
• Extension of weighted average life of debt from 5.8 to 6.0 years may indicate longer-term financial obligations.

NEW YORK--(BUSINESS WIRE)-- Altice USA, Inc. (NYSE: ATUS) (“Altice USA”), today announces that its wholly owned subsidiary CSC Holdings, LLC (“CSC”) successfully priced and allocated a new $2 billion 5-year Senior Secured Term Loan B (the “Senior Secured Term Loan B”) under its existing credit agreement originally dated as of October 9, 2015, as amended, restated, modified or supplemented from time to time. The Senior Secured Term Loan B will mature on the date that is the earlier of (i) January 15, 2028 and (ii) April 15, 2027 if, as of such date, any September 2019 Term Loans (as defined in the Eleventh Amendment) are still outstanding, unless the September 2019 Term Loan Maturity Date (as defined in the Eleventh Amendment) has been extended to a date falling after January 15, 2028. The proceeds from this new Senior Secured Term Loan B are expected to be used to refinance in part (including by way of cashless roll) the outstanding principal amount of CSC’s March 2017 Term Loans (as defined in the Fourth Amendment) and October 2018 Incremental Term Loans (as defined in the Sixth Amendment).

The new Senior Secured Term Loan B will bear interest at a rate per annum equal to the Term SOFR rate plus a margin of 4.50% per annum. As a result, the average cost of debt for CSC is expected to increase from 5.1% to 5.3% and the weighted average life of CSC’s debt has been extended from 5.8 to 6.0 years on a pro forma basis as of September 30, 2022.

This press release is for informational purposes only and shall not constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About Altice USA

Altice USA (NYSE: ATUS) is one of the largest broadband communications and video services providers in the United States, delivering broadband, video, mobile, proprietary content and advertising services to nearly 5.0 million residential and business customers across 21 states through its Optimum brand. The Company operates a4, an advanced advertising and data business, which provides audience-based, multiscreen advertising solutions to local, regional and national businesses and advertising clients. Altice USA also offers hyper-local, national, international and business news through its News 12, Cheddar News and i24NEWS networks.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this release, including, without limitation, those regarding our intentions, beliefs or current expectations concerning, among other things: our future financial conditions and performance, our long-term strategy and business plans, market conditions, industry developments and potential strategic opportunities. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “represents”, “forward”, "will", or “continue”, or other variations or comparable terminology. Where, in any forward-looking statement, we express an expectation or belief as to future results or events, such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. To the extent that statements in this release are not recitations of historical fact, such statements constitute forward-looking statements, which, by definition, involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements including risks referred to in our most recently filed Annual Report on Form 10-K and in our most recently filed Quarterly Report on Form 10-Q. You are cautioned to not place undue reliance on Altice USA’s forward-looking statements. Any forward-looking statement speaks only as of the date on which it was made. Altice USA specifically disclaims any obligation to publicly update or revise any forward-looking statement, as of any future date.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221215006052/en/

Investor Relations

Nick Brown: +1 917 589 9983 / nick.brown@alticeusa.com

Sarah Freedman: +1 631 660 8714 / sarah.freedman@alticeusa.com

Communications

Lisa Anselmo: +1 516 279 9461 / lisa.anselmo@alticeusa.com

Janet Meahan: +1 516 519 2353 / janet.meahan@alticeusa.com

Source: Altice USA

FAQ

What is the significance of Altice USA's new $2 billion loan?

The new loan will refinance existing debt, potentially improving financial flexibility.

How will the new Senior Secured Term Loan B affect ATUS's debt levels?

It increases the average cost of debt from 5.1% to 5.3%.

When does the new term loan for Altice USA mature?

The loan matures on January 15, 2028, or April 15, 2027, depending on prior loans.

What is the expected impact on Altice USA's financials from the refinancing?

The refinancing might optimize capital structure but will increase the cost of debt.