CSC Holdings added a new $1.5 billion million incremental term loan facility under its existing credit agreement originally dated October 9, 2015. The borrower is an indirect, wholly-owned subsidiary of Altice USA.
According to a related 8-K filing, JPMorgan Chase served as administrative agent for the transaction.
The term loans will be priced at 99.50% and will mature in January 2026. The term loans may be comprised of eurodollar borrowings or alternate base rate borrowings, and will bear interest at a rate per annum equal to the adjusted LIBO rate or the alternate base rate, as applicable, plus the applicable margin, where the applicable margin is with respect to any alternate base rate loan, 1.50% per annum and with respect to any eurodollar loan, 2.50% per annum.
The proceeds of the term loans will be used, together with proceeds from the borrower’s anticipated offering of senior guaranteed notes, borrowings under the borrower’s revolving credit facility and cash on balance sheet, to refinance certain existing indebtedness of the borrower and Cablevision Systems, the direct parent of the borrower and fund a dividend of $1.5 billion to Altice USA. Altice USA is expected to use such proceeds to fund a dividend to its stockholders immediately prior to and in connection with the separation of Altice USA from its controlling stockholder, Altice N.V.
Altice USA delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content and advertising services to approximately 4.9 million residential and business customers across 21 states through its Optimum and Suddenlink brands.
