Numericable and Altice announce 10bn-equivalent bond package

Mon Apr 14, 2014 7:32am EDT

LONDON, April 14 (IFR) - Numericable and Altice are planning to raise more than 10bn-equivalent in bonds to fund their acquisition of French telecom unit SFR from Vivendi.

The jumbo bond package will be split into 6.04bn-equivalent of bonds at the Numericable operating company level and 4.15bn-equivalent of bonds at the Altice holding company level, both split into dollar and euro tranches.

As IFR reported on Friday, the Numericable bond is split into five-, eight- and 10-year tranches, while the Altice bond is solely eight-year debt.

The Numericable bonds are senior secured first lien notes, split into five-year non-call two, eight-year non-call three and 10-year non-call five tranches.

The five-year bond will have 500m and US$920m tranches, while the eight- and 10-year bonds will both be split into 1bn and US$2bn tranches.

The Altice bonds are eight-year non-call three senior notes, but the dollar and euro split is yet to be determined.

Investor meetings start today in London, with a lunch hosted by Altice's founder Patrick Drahi. A second meeting in London will follow on Tuesday morning, before the roadshow moves to the United States from Tuesday to Thursday. A final day of meetings will be held after the Easter break on April 22 in Paris and Frankfurt, with pricing of the deal expected on April 23.

JP Morgan is lead-left bookrunner on the Numericable opco bond while Goldman Sachs is lead-left on the Altice holdco bond. The pair are global coordinators on both tranches, along with Deutsche Bank. Deutsche Bank is left-lead on the EUR6.55bn-equivalent loan component on the deal. (Reporting by Robert Smith, Editing by Helene Durand and Julian Baker)