Lisbon, Portugal / Bloomberg: Altice International has moved two major units—Altice Portugal SA and Altice Caribbean Sarl—out of the reach of creditors and raised new debt in a bold financial maneuver aimed at shoring up liquidity and managing its growing debt burden.
By designating these subsidiaries as unrestricted, the company allows them to incur debt, sell assets, or pay dividends without lender approval. Altice Portugal has already raised €750 million ($870 million) in new debt to cover upcoming Altice International liabilities and general working capital needs. The company also flagged the potential to raise an additional €2 billion to further strengthen liquidity.
Impact on Creditors and Debt Markets
Altice International’s so-called drop-down maneuver—transferring assets to unrestricted units—has raised concerns among creditors. According to Bloomberg Intelligence, the move leaves the remaining restricted group, including assets in Israel, with a net debt-to-EBITDA ratio of 26x, placing creditors in a “perilous position” ahead of potential restructuring.
Following the announcement, Altice International’s 5.75% dollar-denominated bonds due in 2029 dropped over 7 cents to below 67 cents on the dollar. Creditors have reportedly begun organizing for upcoming debt negotiations.
Strategic Moves and Financial Performance
Altice International also announced a strategic review of its asset portfolio, signaling potential disposals in the coming years. Additionally, three independent members have joined the board, and Altice Caribbean is now held by a direct subsidiary of Altice Group Lux Sarl.
The company’s third-quarter results showed a 12.1% year-on-year drop in earnings alongside 4.2% revenue growth, reflecting lower margins on growing revenue streams and higher operating costs.
Altice International, led by founder Patrick Drahi, is exploring aggressive financial strategies to navigate its €8.7 billion net liabilities while maintaining operational stability across its global operations.
