Altice Debt Shake Up Exposes Fragility of Loan Safeguards, Moody’s Says
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000A recent debt restructuring by Altice USA served leveraged loan investors with a reminder that the legal protections they think they have can vanish in an instant, according to Moody’s Ratings.Altice USA obtained a term loan of $2 billion from JPMorgan Chase & Co. late last month through an entity called CSC Holdings, and used it to repay debt due in 2028 early. The new debt came with some of the tightest investor safeguards — known as covenants — in Altice’s capital stack, limiting actions that can frustrate creditors, such as shifting collateral beyond the reach of existing holders, Bloomberg reported at the time.