Numericable-SFR in $5bn debt refinance op

7th April 2016, Comments 0 comments

French telecoms and media group Altice said Thursday its telecoms and cable operator subsidiary Numericable-SFR had borrowed $5.19 billion (4.56 billion euros) to refinance debt.

Altice said the refinancing involves placing 10-year secured notes with "institutional investors" in the United States.

The cash will enable repayment of $2.4 billion of existing SFR debt which matures in 2019 and 2020, Altice added.

The operation means the firm will see the average maturity of its debt raised from 5.8 years to 7.9 years.

In exchange, its "liquidity profile" will be strengthened, and the next debt repayments will be due in 2022.

The company added that the weighted average cost of its debt will increase marginally from 4.8 to 5.4 percent.

An informed source said the rise would cost "several tens of millions of dollars before tax," marginally impacting profits.

© 2016 AFP

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