Altice USA Prices Debt Offering to Fund Special Dividend

$1B in notes to help finance $1.5B dividend tied to reorganization
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Altice USA said subsidiary CSC Holdings will issue $1 billion in debt securities to help finance a $1.5 billion special dividend tied to a planned split with its European parent.

Altice USA announced earlier this month plans to separate its U.S. and European operations, forming Altice USA and Altice Europe. The split is expected to be completed in the second quarter. As part of the agreement, Altice USA said it would issue a one-time cash dividend to its shareholders prior to separating.

In a statement Tuesday, Altice USA said its wholly-owned subsidiary CSC Holdings has priced $1 billion in senior guaranteed notes due 2028, with an interest rate of 5.375%. The notes will pay interest semi-annually on Feb. 1 and Aug. 1 of each year, beginning Aug. 1, 2018. The notes will mature on Feb. 1, 2028. The offering is expected to close on or about Jan. 29.

According to Altice USA, the offering will be used together with the proceeds from term loans made available to the issuer, borrowings from a revolving credit facility and cash on its balance sheet, to refinance certain debt and fund the special dividend.

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