Altice SFR - comment

Bloomberg are reporting that SocGen were unable to sell its RCF as bids came in lower than its 70% reserve. The movement in the RCF down to the operations does not appear to have any impact on expectations of recovery at the various senior creditor classes.  We had expected that the inter-creditor agreement which treats the RCF equally with the Term Loans and the Senior Secured Notes would ensure this to be the case.

We note that pushing down the RCF further to OpCo level could prepare the company for putting its finance vehicles and HoldCos including France SA into a process while maintaining liquidity in the OpCos.