With the return of fare concessions, more senior citizens are expected to choose trains for long-distance travel. This is likely to increase passenger numbers on several routes. Senior citizens who depend on trains for low-cost long journeys have been waiting for relief for a long time
Altice International Bonds See Record Drop After Asset Drop-Down
Altice International Bonds See Record Drop After Asset Drop-Down
(Bloomberg) -- Altice International's bonds plunged the most on record on Monday following an announcement on Friday afternoon that the company had shifted some assets out of the reach of creditors, in an aggressive move aimed at stabilizing its finances.
The euro-denominated, first-lien notes due in August 2029 plunged as much as 9 cents to 66, according to data compiled by Bloomberg. Meanwhile, the more junior second-lien bonds due in January 2028 fell over 16 cents on the euro to 19, its largest intraday drop since issuance.
The telecommunications company, founded by Patrick Drahi, said late on Friday it had designated Altice Portugal SA, which holds all of its operations in Portugal, and Altice Caribbean Sarl, which houses its activities in the Dominican Republic, as so-called unrestricted subsidiaries.
This means that they aren't governed by the terms of the existing credit agreements, and that they are free to incur debt, sell assets, or pay dividends without needing approval from lenders. And indeed, one of the Altice Portugal divisions has already raised €750 million ($872 million) of new debt to pay upcoming Altice International liabilities, as well as for general working capital purposes, the company said on Friday.
The move, known in credit markets as a drop-down, left the restricted group with essentially just Altice's Israeli operations.
“Altice gave creditors a cruel post-Thanksgiving gut-punch on Friday after market close, announcing it had shifted assets contributing 80% of the last-twelve-month Ebitda out of the restricted group,” wrote Creditsights analysts led by Mark Chapman. “At this stage, we see Drahi as holding most of the cards, with limited scope for the creditors to fight back hard. We see creditors in a weak position — both with assets stripped and given the highly uncertain valuations for all of the assets in the group.”
The company also flagged the possibility of raising €2 billion of additional debt at the level of Altice Portugal, according to the note, which would allow it to further bolster its liquidity position.
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Source: LiveMint
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With the return of fare concessions, more senior citizens are expected to choose trains for long-distance travel. This is likely to increase passenger numbers on several routes. Senior citizens who depend on trains for low-cost long journeys have been waiting for relief for a long time
2 months ago
