Business Context and Reporting Period
This Form 8-K is filed by Altice USA, Inc. (the "Company"), a Delaware corporation, reporting events occurring on February 11, 2019. The filing details a material definitive agreement involving the issuance of additional senior guaranteed notes by CSC Holdings, LLC, an indirect, wholly owned subsidiary of the Company.
Key Financial Metrics
- Debt Issuance: $250.0 million aggregate principal amount of 6.500% senior guaranteed notes due 2029.
- Interest Rate: 6.500% per annum.
- Issuance Price: 101.75% of principal amount plus accrued interest from January 31, 2019, to February 11, 2019.
- Maturity Date: February 1, 2029.
- Interest Payment Schedule: Semi-annually in arrears on February 1 and August 1, commencing August 1, 2019.
- Total Series Outstanding: The new issuance combines with $1,500.0 million of Original Notes issued on January 31, 2019, creating a single series of $1,750.0 million.
The filing text does not provide clear values for revenue, profit, cash flow, margins, or overall liquidity positions.
Material Changes
The primary material change is the expansion of the Company's debt capital structure through a private placement under Rule 144A and Regulation S. This transaction increases the total principal amount of the 6.500% senior guaranteed notes due 2029 from $1,500.0 million to $1,750.0 million.
Guidance, Outlook, and Risks
The filing does not contain management guidance, forward-looking outlook statements, or specific risk factors beyond the standard obligations associated with the new debt instrument. The notes are unsecured obligations of the Issuer and are guaranteed by the Company. The transaction was conducted pursuant to an indenture dated January 31, 2019.
Investor Verification Checklist
- Verify the total outstanding debt load of Altice USA, Inc. following the addition of the $250.0 million in new notes.
- Confirm the terms of the guarantee provided by Altice USA, Inc. for the obligations of CSC Holdings, LLC.
- Review the Indenture filed as Exhibit 4.1 to the February 5, 2019, Form 8-K for covenants and default provisions applicable to the combined $1,750.0 million note series.
- Assess the impact of the 6.500% interest rate on the Company's future interest expense and cash flow requirements.