According to a report by Bloomberg on Friday, Altice USA (ATUS) is assessing options for its debt load with the help of Moelis & Co.
Bloomberg, citing people with knowledge of the matter, stated that the US division of billionaire Patrick Drahi’s telecommunications company has a debt pile of around $25 billion on a consolidated basis, company filings show. However, it isn’t facing any significant near-term maturities.
Altice USA shares dropped following the news, hitting a low of $1.84 per share. However, the stock has recovered most of those initial losses and is now down 0.5% at $2.04.
In a note to clients this week, Deutsche Bank noted that Altice USA’s management recently stated that they “are looking at all options to address our debt maturity profile and maintain a capital structure that best supports our long-term strategic objective”.
The bank believes that a seven times leveraged balance sheet is not a capital structure that…
