JPMorgan Backs Altice USA’s Refinancing of TPG, Goldman Debt

Core Viewpoint - JPMorgan Chase & Co. is providing Altice USA with approximately $1.1 billion to refinance debt, aiming to alleviate creditor concerns following an antitrust lawsuit and controversial debt maneuvers [1]. Group 1: Refinancing Details - The funds from JPMorgan will allow Altice to refinance a $1 billion asset-backed facility obtained from Goldman Sachs and TPG Angelo Gordon in July at par value [2]. - The refinancing is urgent as the debt's call protection period is about to begin, which would require Altice to pay a premium above par for refinancing [2][6]. Group 2: Creditor Relations - Efforts to preserve Altice's cash are expected to appease creditors, as the company has been struggling with a heavy debt load and has engaged advisers to explore options [3]. - Altice's lenders have faced turmoil due to the company's recent actions, including a lawsuit against creditors alleging the formation of an "illegal cartel" [4]. Group 3: Recent Financial Moves - In November, Altice, recently rebranded as Optimum Communications Inc., raised $2 billion from JPMorgan for early refinancing of a loan due in 2028, which had strict investor safeguards [5]. - The refinancing is strategically timed to avoid a premium that could allow lenders to recover up to 116 cents on the dollar [6].