(Bloomberg) — Altice USA is evaluating options for its debt load with the help of Moelis & Co., according to people with knowledge of the matter, who asked not to be identified discussing the private arrangement.
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The US unit of billionaire Patrick Drahi’s telecommunications company has a debt pile totaling some $25 billion on a consolidated basis, company filings show. It isn’t facing any significant near-term maturities.
Altice USA and Moelis declined to comment.
The telecom company’s shares fell as much as 10.5% on Friday after Bloomberg reported Moelis’ involvement.
The company on Thursday reported a loss per share of 5 cents, missing analyst estimates. Chief Executive Officer Dennis Mathew in a call with investors said the company is considering how to best deal with its debt load, but didn’t provide details.
“We are looking at all options to address our debt maturity profile and maintain a capital structure that best supports our long-term strategic objectives,” Mathew said.
Read More: Billionaire Drahi’s ‘Bully-Boy’ Moves Leave Creditors Flummoxed
Altice USA is reviewing its options as higher interest rates and weak earnings have weighed on the $60 billion debt pile of Drahi’s entire Altice telecom and media empire. Altice USA is one of the three silos of Drahi’s telecom and media business — the others being Altice France, which controls French mobile operator SFR and Altice Media, and Altice International.
Exacerbating Drahi’s debt woes is a looming corruption case against executives tied to Altice that began in Portugal and has rippled across his operations globally. Altice cut ties with its US head of procurement Yossi Benchetrit in the fallout. Alexandre Fonseca, chairman of Altice USA, also left the company, along with about ten other employees.
–With assistance from Benoit Berthelot and Todd Shields.
(Adds share move in paragraph four.)
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