Altice SFR - comment

What are the chances of the deal falling through at this stage? A group of 2029 bondholders are seeking to change some agreement terms, namely, to have only one senior bond with one maturity date. The sub-set of 2029 bondholders, advised by Ashurst and Ceres Partners, are unhappy to be extended until 2032, at the back of the maturity profile of Senior Secured Notes. The 2029s in total are c. 33% of the Senior Secured debt stack, so if they voted unanimously they would theoretically be able to block the deal. But we expect a lot of x-holders. 55% of Senior Secured Creditors have acceded to the agreement, with another 11% required to get to the magic 66.6%. 

We understand the 2029’s position, and we remain doubtful on the operational fundamentals of Altice SFR. A further restructuring is not out of bounds, and therefore the prospect of some senior debt maturing before a second restructuring is not equitable to all holders.