Altice SFR - comment

We have spoken to several clients on this name in the last couple of days, as the market tries to reassess the risks of Altice SFR and especially the lack of protection in the documentation.  The reality is the cosy GS led chat with Drahi in September is now a distant memory, with promises “to do whatever it takes” to deleverage now appearing to mean that creditors will share the pain.  Assets that were earmarked for deleveraging purposes, namely Altice Media and XPFibre may not be used for deleveraging purposes given they are not part of the restricted group.

A portion of bondholders have now hired Houlihan Lokey and Millbank to engage with the Company and represents holders of both senior and unsecured bonds.  We continue our analysis and happy to continue our dialogue with you.