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

(Bloomberg) — JPMorgan Chase & Co. is lending Altice USA roughly $1.1 billion more to refinance debt before the early repayment penalty kicks in; It’s a move that could reassure creditors still reeling from a bombshell antitrust lawsuit and controversial debt maneuver.

JPMorgan acquired Altice from Goldman Sachs Group Inc. in July, according to people familiar with the matter. and TPG is providing funds to refinance its $1 billion asset-based loan from Angelo Gordon at par. The debt’s call protection period will begin in the coming days, meaning Altice will have to pay an above-normal premium for the refinancing.

Representatives for JPMorgan, TPG and Goldman Sachs declined to comment. A representative for Altice did not immediately respond to a request for comment.

Any effort to preserve Altice’s cash would likely appease creditors of the embattled telecommunications firm, which is struggling under a heavy debt load and has appointed advisors to evaluate its options.

Lenders have also been shaken by some of his recent moves. In November, the U.S. unit of billionaire Patrick Drahi’s telecom empire sued creditors including Apollo Capital Management LP, Ares Management LLC and BlackRock Financial Management Inc., alleging they formed an “illegal cartel” when they signed a so-called cooperation agreement.

That same month, recently Optimum Communications Inc. Altice, renamed Altice, raised $2 billion from JPMorgan for an early refinancing of a loan maturing in 2028. Although this loan included some of the most stringent investor protections in the company’s capital structure, the borrowing was augmented by guarantees from existing creditors, effectively making JPMorgan higher in the debt repayment pipeline, Moody’s Ratings said in a report.

The refinancing comes before a bonus kicks in that could allow lenders to earn up to 116 cents on the dollar. The asset-backed facility, scheduled for delivery in 2031, is secured by receivables created by the company’s Bronx and Brooklyn service area and network assets, primarily the Hybrid Fiber Coaxial network.

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