CSC Holdings’ $2.5 Billion Financing Transactions in Connection with the Separation of Altice USA from Altice N.V.

Simpson Thacher represented Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and Crédit Agricole Corporate and Investment Bank, as the initial purchasers in the Rule 144A/Regulation S offering of $1 billion aggregate principal amount of 5.375% Senior Guaranteed Notes due 2028 by CSC Holdings, LLC (“CSC Holdings”).

The Firm also represented JPMorgan Chase Bank, N.A., BNP Paribas Securities Corp., Goldman Sachs Lending Partners LLC and Crédit Agricole Corporate and Investment Bank, as lead arrangers, in connection with $1.5 billion of term loans borrowed by CSC Holdings. CSC Holdings is a wholly owned subsidiary of Altice USA, Inc. (“Altice USA”).

Proceeds from the financing transactions will be used, together with proceeds from borrowings under CSC Holdings’ revolving credit facility and cash on balance sheet, to fund a dividend to Cablevision Systems Corporation (“Cablevision”), the direct parent of CSC Holdings, and to refinance certain existing indebtedness of CSC Holdings and Cablevision. Cablevision will use the proceeds of the cash dividend to fund a cash dividend to its parent, Altice USA, which will in turn use the proceeds to fund a cash dividend to its stockholders immediately prior to and in connection with the separation of Altice USA from Altice N.V.

CSC Holdings is a broadband communications and video services provider operating in the New York metropolitan area. As of September 30, 2017, CSC Holdings delivered broadband, pay television, telephony services, Wi-Fi hotspot access, proprietary content and advertising services to approximately 3.1 million residential and business customers under the ‘‘Optimum’’ brand name. CSC Holdings is a subsidiary of Altice USA, which delivers residential and business telecommunications services to approximately 4.9 million customers across 21 states. Altice USA is a subsidiary of Altice N.V. (Euronext: ATC, ATCB).

The Simpson Thacher team for the transaction included Lesley Peng (Picture), Brian E. Rosenzweig and Meaghan Krupa (Capital Markets—New York); Gil Strauss, Emily Nordin and Tuca Bihari (Capital Markets—London); Patrick Ryan, Jessica Tuchinsky and Leah Nudelman (Banking and Credit); Robert Holo and William Smolinski (Tax); Marcela Robledo (Intellectual Property); Eric Wolf (Executive Compensation and Employee Benefits); Michael Isby (Environmental); and Andrew Pagliughi (Blue Sky).

 

Involved fees earner: Lesley Peng – Simpson Thacher & Bartlett; Brian Rosenzweig – Simpson Thacher & Bartlett; Meaghan Krupa – Simpson Thacher & Bartlett; Gil Strauss – Simpson Thacher & Bartlett; Luiz Arthur Bihari – Simpson Thacher & Bartlett; Patrick Ryan – Simpson Thacher & Bartlett; Jessica Tuchinsky – Simpson Thacher & Bartlett; Leah Nudelman – Simpson Thacher & Bartlett; Leah Nudelman – Simpson Thacher & Bartlett; William Smolinski – Simpson Thacher & Bartlett; Marcela Robledo – Simpson Thacher & Bartlett; Eric Wolf – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Andrew Pagliughi – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: BNP Paribas Securities; Crédit Agricole Corporate and Investment Bank; Goldman, Sachs & Co.; JP Morgan Securities; JPMorgan Chase & Co.; Goldman, Sachs Lending Partners LLC;