Business Context and Reporting Period
This Form 8-K is filed by Altice USA, Inc. (not Optimum Communications, Inc., which is a subsidiary brand) on July 17, 2025, reporting events occurring on July 16, 2025. The filing details the entry into a material definitive agreement by Cablevision Funding LLC, an indirect wholly-owned subsidiary of the Company.
Key Financial Metrics and Transaction Details
The Company has secured a new financing facility with the following terms:
- Facility Type: Receivables Facility Loan and Security Agreement.
- Principal Amount: $1,000 million in initial term loan commitments.
- Interest Rate: Fixed at 8.875% per annum.
- Original Issue Discount (OID): 400 basis points.
- Maturity Date: January 16, 2031.
- Amortization: Monthly at a rate of 2.000% per annum.
- Collateral: Substantially all assets of the Borrower and Guarantors, including receivables from the Bronx and Brooklyn service areas and related network assets.
- Lenders: Goldman Sachs Bank USA and funds managed by TPG Angelo Gordon.
Material Changes and Use of Proceeds
This transaction represents a new material financial obligation. The proceeds from the Initial Term Loans are designated for:
- Financing working capital.
- Prepaying existing indebtedness.
- Funding the Borrower's interest reserve account to meet minimum requirements.
- Paying transaction-related costs.
- Other general corporate purposes.
The filing does not provide comparative financial metrics (revenue, profit, cash flow) for the current period versus the prior period, as this is a current report regarding a specific transaction rather than a periodic financial statement.
Guidance, Risks, and Contingencies
The filing does not contain updated financial guidance or management commentary on future outlook beyond the transaction details. Key risks and contingencies associated with this agreement include:
- Debt Service Obligation: The Company assumes a fixed interest obligation of 8.875% and mandatory monthly amortization.
- Collateral Encumbrance: Assets in the Bronx and Brooklyn service areas are now secured by this facility.
- Covenant Compliance: The agreement requires maintaining a minimum interest reserve amount.
Investor Verification Checklist
- Verify the exact amount of existing indebtedness being prepaid with these proceeds.
- Review the full text of the Loan and Security Agreement (Exhibit 10.1) for specific financial covenants and default provisions.
- Assess the impact of the 8.875% fixed rate and 2.000% annual amortization on future cash flow projections.
- Confirm the status of the interest reserve account funding requirements.