Altice announces successful refinancing of a portion of the existing debt of its SFR and Altice International credit pools, pricing €2.492 billion and €863 million of new Term Loans respectively
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Average maturity of debt refinanced extended by c.2 years
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Total annual interest cost savings of €60 million[1]
March 23, 2017 - Altice N.V. (Euronext: ATC, ATCB) announces that it has successfully priced for its SFR Group SA (Euronext:SFR) ("SFR" or "Altice France") credit pool 2.492 billion euro-equivalent2 of new 8.25-year Term Loan B`s. Closing of the new financing is subject to closing conditions and the proceeds will be used by SFR to refinance its €850 million April 2023, €297 million July 2023 and $1,418 million January 2024 Term Loan B`s.
In addition, Altice Financing S.A., a subsidiary of Altice International S.a.R.L. ("Altice International") has successfully priced 863 million euro-equivalent2 of new 8.25-year Term Loan B`s. Closing of the new financing is subject to closing conditions and the proceeds will be used by Altice International to refinance its €446 million July 2023 Term Loan B and $425 million 9.875% Senior Unsecured Notes due December 2020.
Following the consummation of the refinancing, the average maturity of SFR`s capital structure has been extended from 7.3 to 7.6 years and the weighted average cost of SFR`s debt will decrease from 5.2% to 4.9%. The average maturity of Altice International`s capital structure has been extended from 6.7 to 7.0 years and the weighted average cost of Altice International`s debt will decrease from 6.2% to 5.9%. This refinancing activity again strengthens Altice`s liquidity profile and reduces total annual interest costs by €60 million1. The average maturity of Altice Group is now 6.8 years and the weighted average cost of debt will decrease to 6.0% (from 6.1% previously).
The 2.492 billion euro-equivalent of new SFR Term Loan B`s comprise one dollar loan of $1.420 billion at a margin of 275bps over Libor (issued at an OID of 99.75) and one euro loan of €1.145 billion at a margin of 300bps over Euribor (issued at an OID of 100). For Altice International, the 863 million euro-equivalent new Term Loan B was issued as a dollar loan of $910 million at a margin of 275bps over Libor (issued at an OID of 99.75).
Dennis Okhuijsen, CFO of Altice Group, said: "With this latest refinancing transaction totaling €3.4 billion, Altice Group has now refinanced about 30 billion euros of its debt in the past year. This major refinancing activity clearly demonstrates Altice`s commitment to proactively manage its liabilities across every credit pool, significantly improving its maturity schedule as well as reducing interest costs."