Altice a annoncé il y a deux jours qu'il "simplifiait sa structure", en gros qu'il faisait sauter l'étage intermédiaire Altice Luxembourg entre Altice France et Altice Europe. Altice Luxembourg avait des dettes et pas de revenus en propre, ce qui était problématique, et il semble que ce soit SFR/Altice France qui récupère la dette. Comme d'habitude, le jargon financier employé par Altice n'aide pas à éclairer l'opération, mais c'est ce qui ressort quand même de son CP.
L'opération s'accompagne en effet de l'émission de nouveaux emprunts : 1.6 milliard d'euros à un taux de 4% et 500 millions de dollars à un taux de 2.1%, qui vont servir à rembourser les emprunts d'Altice Luxembourg.
Le ratio dette/EBITDA d'Altice France grimperait à 4.7x.
Cela présente plusieurs avantages pour Altice Europe. D'abord, il profite des taux bas actuels pour emprunter à des taux bien plus faibles que les 5 à 7% habituels d'Altice Luxembourg, ce qui diminuera la charge des intérêts annuels, Altice parle de 363 millions économisés dans les années à venir. D'autre part, jusqu'ici, pour accéder aux cash flow d'Altice France, Altice Europe devait passer par l'étage intermédiaire Altice Luxembourg, là ce sera direct. Au niveau du groupe, cela ne change rien sur la dette totale, c'est plutôt sa répartition qui change.
On y verra peut-être plus clair lors de la présentation des résultats annuels d'Altice en Mars, mais surtout des résultats du 1er trimestre 2020 en Mai prochain.
Altice Europe announces transaction to significantly simplify the group capital structure
Transaction to result in capital structure with two distinct and diversified funding pools: Altice France and Altice International
Altice France priced:
-€1.6billion equivalent of 8-year Senior Notes, coupon at 4.0%
-€500million of 5-year Senior Secured Notes, coupon at2.1%
Annual interest savings of €36million, lowest coupon ever at 2.1%€
363 million achieved out of €700 million annual savings target
Altice Europe N.V. (Euronext ATC, ATCB) (“Altice Europe”) has announced a three-part transaction to significantly simplify the group capital structure. Following the transaction, including the exchange offer, Altice Europe will achieve its long-standing objective of significantly simplifying the group capital structure through the removal of Altice Luxembourg HoldCo. This will resultin a group capital structure with direct access to cash flows from two distinct, diversified funding pools: Altice France and Altice International. With today’stransaction and Altice International’s successful January 2020 refinancing,the average maturity for the Altice Europe debt capital structure has been extended from 6.0to 6.6 years, with no major maturities before 2025.The weighted average cost of debt for Altice Europe has decreased from 5.4%1 to 5.0%.Altice France and Altice International (the telecom perimeter) total pro forma net leverage is 4.7x on an L2QA basis.
Malo Corbin, Chief Financial Officer of Altice Europe, said: “The simplification of the group capital structure has been a long-standing objective for the group and as such this transaction is a key milestone. Altice Europeis committed to proactively manage its liabilities across its simplified and strengthened capital structure, further improvingthe maturity schedule and reducing annual cash interest costs.The Group is on track to reach its mid-term leverage target of 4.25x for the telecom perimeter. Our deleveraging strategy has been underpinned by improved operational performance,successful monetization of infrastructure in Portugal as well as this transaction and the recent January 2020 Altice International refinancing. We have achieved €363million annual savings pro forma for this transaction out of our previously stated target of €700million annual savings. This is a target that we can exceed sooner than expected given the existing low rate environment and on going strong support from debt capital markets.”
Transaction Summary :
(i)Altice Europe has successfully priced and allocated €2.1billion (equivalent) of new Notes at Altice France following significant excess demand:
-€1.6billion (equivalent) of 8-year euro and dollar Senior Notes maturing in January 2028 with a weighted average cost on a fully euro swapped basis of 4.0%,
-€500million of 5-year euro Senior Secured Notes maturing in January 2025 with acoupon of 2.1%.
The proceeds from this transaction,along with cash on balance sheet,will be used to partially refinance the €750million and $1,480million Altice Luxembourg 2025 Senior Notes, reducing the weighted average cost of debt of the Altice Europe complex and substantially extending maturities.
(ii)Altice Europe will offer to exchange the €1,400million and $1,600 Altice Luxembourg 2027 Senior Notes into Senior Notes at a subsidiary of Altice Franceas per the Exchange Mechanism described in the existing indenture. The Notes will retain the same characteristics.
(iii)Following the issuance and exchange, the new Senior Notes will move to the immediate parent company of Altice France
http://altice.net/sites/default/files/pdf/Altice%20Europe%20N.V.%20announces%20significant%20simplification%20of%20the%20group%20capital%20structure.pdf