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Altice USA To Go Public Tomorrow After $1.92B IPO – Update

Deadline logo Deadline 6/21/2017 David Lieberman
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UPDATED, with IPO launch date: Altice USA moved quickly. The No. 4 cable operator plans to go public tomorrow, it says, following following an IPO that prices its shares at $30 apiece. That makes the sale worth $1.92 billion.

BC Partners accounts for 49% of the shares sold in the IPO, followed by the Canada Pension Plan Investment Board with 32%. Stock sold directly by Altice USA represents 19% of the offering.

Parent company Altice will control 70.3% of the U.S. company’s total stock and 98.3% of the voting rights.

PREVIOUS, 2:29 PM: Looks like Altice’s planned U.S. IPO will be bigger than it projected last week. In an SEC filing today the No. 4 cable operator says it expects to sell 63.9 million shares — 37% more than it proposed in a previous filing — at $27-$31 a share.

At $29, Altice now is targeting an offering for $1.85 billion, up from $1.35 billion.

The shares will be listed at the New York Stock Exchange under the symbol “ATUS.”

Most of the cash raised would go to current owners of Altice’s privately held shares. They account for nearly 51.9 million shares of the stock to be offered in the IPO — up from 34.5 million in the previous filing.

Major holders of Altice USA include BC Partners and Canada Pension Plan Investment Board in addition to Paris-based parent company Altice — controlled by billionaire Patrick Drahi.

Altice USA still plans to sell about 12.1 million shares, potentially raising $331 million.

It would use the cash to redeem part of the $2 billion in Senior Notes debt it inherited last year when it completed its $10 billion acquisition of Cablevision. The notes are due in 2025 and pay a steep 10.875% in interest.

Not counted in the tally are nearly 7.8 million shares that underwriters would reserve to sell to Altice directors, officers and employees. Directors and officers would have to hang on to the stock for at least 180 days; others would be subject to a 35-day lockup.

Buyers of the Class A shares will have little influence on Altice USA: About 98% of the votes will be controlled by owners of Class B stock — primarily Drahi — which comes with 25 votes per share.

Altice USA had 3.5 million video customers and 4 million broadband subscribers as of March. It filed preliminary paperwork for an IPO in April without the dollar amount it hoped to raise.

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