Altice USA Announces Terms of $1.35B IPO

The listing of 6.5% of the company would result in net proceeds of about $330 million.
William SprouseJune 12, 2017
Altice USA Announces Terms of $1.35B IPO

Altice, the Netherlands-based telecom giant that owns U.S. cable firms such as Cablevision and Suddenlink, has announced terms of the planned initial public offering of its Altice USA cable unit.

The IPO will include more than 46.55 million shares of class A common stock, expected to be priced between $27 and $31 per share, according to a report from The Hollywood Reporter.

Altice is the fourth-largest U.S. cable operator. Priced at the midway mark, the IPO would be valued at around $1.35 billion. The funds could be used to fuel future acquisitions. Analysts say Cox Communications could be a future focus.

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Altice USA operates the former Cablevision Systems business and owns a majority stake in Suddenlink.

Altice was founded by Patrick Drahi and made headlines in 2015 with its $17.7 billion acquisition of Cablevision. It followed that move with a deal to buy Suddenlink for $9.1 billion and was reportedly considering a move to acquire Time Warner Cable before its merger with Charter Communications. Drahi has been described as a protégé of cable mogul John Malone, who in turn has described Drahi as “a genius.”

Of the total shares on offer, Altice USA is offering more than 12 million shares. Funds advised by BC Partners are offering nearly 21 million shares, and more than 13.5 million shares will be offered by entities affiliated with the Canada Pension Plan Investment Board.

The class A shares being sold in the IPO have essentially no voting power in the company, which is controlled almost entirely by class B shares owned by Drahi. When the IPO is completed, Drahi will own 25% of the class A shares.

JPMorgan, Morgan Stanley, Citigroup, and Goldman Sachs are joint book-running managers for the offering. Altice USA will trade on the New York Stock Exchange under the symbol “ATUS.”