Altice USA is closing in on its initial public offering (IPO), and investors looking to buy into this cable company should know that it has some stiff competition ahead of it. Ultimately, investors who buy shares will be making the bet that the fourth largest U.S. cable operator will be able to leverage the money from this offering and grow in an environment with increasing competition.
The company expects to price 46.55 million shares in the range of $27 to $31 apiece, with an overallotment option for an additional 5.17 million shares. At the maximum price, the entire offering is valued up to approximately $1.60 billion.
Specifically, Altice is selling 12.07 million shares of its Class A common stock and the selling stockholders are selling 34.48 million shares. BC Partners is offering up 20.92 million Class A shares, while Canada Pension Plan Investment Board is selling 13.56 million shares.
The underwriters for the offering are JPMorgan, Morgan Stanley, Citigroup, Goldman Sachs, Merrill Lynch, Barclays, BNP Paribas, Credit Agricole, Deutsche Bank Securities, RBC Capital Markets, Scotiabank, Societe Generale and TD Securities. The company intends to list its shares on the New York Stock Exchange under the symbol ATUS.
This company is one of the largest broadband communications and video services providers in the United States. Altice delivers broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content and advertising services to approximately 4.9 million residential and business customers.
Its footprint extends across 21 states through a fiber-rich broadband network with more than 8.5 million homes passed as of the end of March 2017.
Altice acquired Cequel (Suddenlink) back in December 2015 and Cablevision Systems (Optimum) in June 2016. The company serves customers through its two business segments: Optimum, which operates in the New York metropolitan area, and Suddenlink, which principally operates in markets in the south-central United States.
At the end of December 2016, Altice Group delivered broadband, pay television and telephony services to more than 50 million customers in Western Europe, the United States, Israel and the Caribbean, and it reported pro forma consolidated revenue of $26.02 billion (€23.5 billion) and pro forma adjusted EBITDA of $9.86 billion (€8.9 billion) for the year ended December 2016.
The company intends to use the net proceeds from this offering to redeem a portion of the $2 billion aggregate principal amount outstanding of the CSC 2025 senior notes issued by CSC Holdings. The remainder will go toward working capital and general corporate purposes.
Cash Back Credit Cards Have Never Been This Good
Credit card companies are at war, handing out free rewards and benefits to win the best customers. A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges. See our top picks for the best credit cards today. You won’t want to miss some of these offers.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
