Altice International - comment

Investors are a little miffed with the latest move from Altice France. In September, Altice International raised €800m to be used to “redeem, defease or otherwise discharge” the upcoming January 2025 bonds. The majority of the market expected Altice International to call the 2025 bonds, the Company has instead escrowed the cash and is earning government yields instead of calling the bonds. With government yields above the 2.25% coupon on the January 2025 bonds, the Company can earn c. 1-1.5% extra (differential between government yields at 2.25%). 

Although it may make economic sense (earning c. €10m p.a.) there isn’t much logic in frustrating its bondholder base, which is further frustrated in waiting for clarity on the fabled asset sales at Altice International and data centres at Altice France.