Altice SFR France - comment

We had expected the announcement yesterday, but Altice the cleansing statement outlining the proposed deal only reached us today. Creditors have until March 12th to accede to the Transaction.  A couple of quick takeaways before a fuller note later today. 1) Altice France Holding creditors have achieved better than we expected, with 5c of cash (incl. early sign-up) plus interest in March, 20c of reinstated debt plus 14% in common equity. 2) Altice SFR will be 4.6x leveraged post transaction based on a provided pro forma adjusted FY24 EBITDA number. Curiously, there are no financial projections provided by the Company. Altice SFR continues to operate in a competitive market, and we are surprised the Company has not guided for future years. 3) The XpFibre stake will be moved into the restricted Group for Altice France SA (Seniors) and becomes a guarantor entity post-transaction.

We will be updating our analysis in due course.