Altice is Not Solving $58 Billion Debts by Raising Cash
Dutch telecoms company Altice confirmed on Monday that it is not raising cash by selling shares, nor does it intend to perform such action to deal with its billion-dollar debt.
The Netherlands-based phone and cable group statement, which came in response to recent market speculation and misinformation, said that it is not troubled by any loans, and that it has a strong, diversified, as well as a long-term capital structure with robust liquidity position.
It also verified in its statement that its majority shareholder Next Alt does not hold any margin loan exposure related to Altice, and that it has not sold any equities since the initial public offering (IPO).
A British multinational bank said that Altice had no significant refinancing due before 2022, and that its debt was fairly well-covered by free-cash flow.
Altice reiterated that it is not planning on entering into any new major merger and acquisition opportunities and that it would be deleveraging its balance sheet, with the disposal of its non-core assets being at the center of the plan.
The company has started the processes to perform the disposals as early as the first half of 2018. Non-core assets that could be sold include its portfolio of telecom towers as well.
Altice's Debt Issue
Altice, whose shares have nearly halved in the past few weeks, is trying to calm investors’ mind down who have expressed their concern over the company’s debt load of €49.6 billion ($58.41 billion).
The multinational telecoms company has somehow accumulated its debt pile through business purchases, including French telecom group SFR, US’ Suddenlink Communications, and cable television provider Cablevision Systems or Altice USA.
Altice’s founder Patrick Drahi said last week that the telecom group would avert from acquisitions for debt reduction as well as customer satisfaction, but the fear concerning Altice needing to raise cash has harmed its shares.
Its shares regained some footing, after Monday’s statement. Altice’s stock was up by 4.9 percent to $20.84 in pre-market trade.