UPDATE 1-Altice primes market for leveraged loans and holdco bonds

viernes 16 de enero de 2015 08:57 GYT

* Portuguese deal will now include leveraged loans

* Holdco/opco split also emerges (Adds expected size of loan)

By Robert Smith

LONDON, Jan 16 (IFR) - Altice is shifting its funding strategy for its upcoming Portuguese acquisition and will now include leveraged loans as well as a substantial amount of holding company bonds, according to sources close to the deal.

When Altice originally bid for Oi's Portuguese operations in October, the cable and telecoms firm planned to raise mainly dollar bonds solely at Altice International, according to the sources.

Altice International includes the company's cable and telecoms assets in far-flung geographies such as Israel and the Dominican Republic. The other half of the business is Altice France, which holds its French assets.

The listed holdco, Altice SA, sits above both of these businesses.

But Altice had to raise its offer to beat a rival bid from private equity funds Apax and Bain in December, while lowering the earn-out portion of the deal. This raised the cash consideration from around EUR4.5bn to nearly EUR5.7bn, according to the sources.

In order to fund this increase, the company will now have to raise a significant amount of debt at the Altice SA holdco, as it did on the record-breaking Numericable-SFR deal in April.   Continuación...