Morgan Stanley Infrastructure Partners’s Acquisition of 49.99% of Lightpath Fiber Enterprise Business

Simpson Thacher advised Morgan Stanley Infrastructure Partners in the transaction, while Mayer Brown, Shearman & Sterling, and Ropes & Gray advised Altice USA.

Morgan Stanley Infrastructure Partners (“MSIP”) executed its acquisition of 49.99% of the Lightpath fiber enterprise business of Altice USA for an implied enterprise value of $3.2 billion. The transaction, and MSIP’s role as a strategic investor, will support Lightpath’s ongoing and new growth initiatives, improve operational performance and provide strategic and financial flexibility at the company.

As part of the deal, Altice USA will receive total gross cash proceeds of approximately $2.3 billion from the sale and related financing activity, and will retain a 50.01% interest in Lightpath and maintain control of the company. The transaction is expected to close in Q4 2020 following customary regulatory approvals.

Lightpath provides advanced fiber, Ethernet, data transport, IP-based virtual private networks, Internet access, Managed Services, telephony services, including session-initiated protocol (“SIP”) trunking, and VoIP services to a wide range of industries within the business market in the New York metropolitan area.

The Simpson Thacher team advising MSIP included David Lieberman (Picture), Ravi Purohit, Justin Thekkekara, Zain Rifat and Oscar Hwang (M&A); Nancy Mehlman, Jasmine Hay and Abigail Hopper (Tax); David Rubinsky and Joo Hyun Lee (ECEB); Lori Lesser, Jeffrey Ostrow, Corina McIntyre, Raul Duran and Bobbie Burrows (IP); Adeeb Fadil and Timothy Mulvihill (Environmental); Timothy Gallagher (Real Estate); Brian Steinhardt (Credit); and David Greene, David Whelan and Jacob Millikin (Funds).

The Mayer Brown team advising Altice USA included partners Jason Bazar, Lucas Giardelli, Zal Kumar (all NY) and Laurent Borey (Paris) and associates Stephanie Wood and Kelly Donigan (all NY).

Shearman & Sterling advised Altice USA with Scott Petepiece, Derrick Lott, Lara Aryani, Dillon Smith, Jessica K. Delbaum, Alan S. Goudiss, Jordan Altman, Richard Alsop, Gillian Emmett Moldowan, Melisa Brower, John M. Beahn and Jonathan Cheng.

Ropes & Gray advised Altice USA on the transaction financing with a team led by London-based finance partner Michael Kazakevich, with partner Aditya Khanna, counsel Alexandru Mocanu and associates Mansha Malhotraand Ashish Alexander.

Involved fees earner: Jason Bazar – Mayer Brown; Laurent Borey – Mayer Brown; Kelly Donigan – Mayer Brown; Lucas Giardelli – Mayer Brown; Zal Kumar – Mayer Brown; Stephanie Wood – Mayer Brown; Michael Kazakevich – Ropes & Gray; Ashish Alexander – Ropes & Gray; Aditya Khanna – Ropes & Gray; Mansha Malhotra – Ropes & Gray; Alexandru Mocanu – Ropes & Gray; Richard Alsop – Shearman & Sterling; Jordan Altman – Shearman & Sterling; Lara Aryani – Shearman & Sterling; John Beahn – Shearman & Sterling; Melisa Brower – Shearman & Sterling; Jonathan Cheng – Shearman & Sterling; Jessica Delbaum – Shearman & Sterling; Gillian Emmett Moldowan – Shearman & Sterling; Alan Goudiss – Shearman & Sterling; Derrick Lott – Shearman & Sterling; Scott Petepiece – Shearman & Sterling; Dillon Smith – Shearman & Sterling; Bobbie Burrows – Simpson Thacher & Bartlett; Raul Duran – Simpson Thacher & Bartlett; Adeeb Fadil – Simpson Thacher & Bartlett; Timothy Gallagher – Simpson Thacher & Bartlett; David Greene – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Abigail Hopper – Simpson Thacher & Bartlett; Oscar Hwang – Simpson Thacher & Bartlett; Joo Hyun Lee – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; David Lieberman – Simpson Thacher & Bartlett; Corina McIntyre – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Jacob Millikin – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Jeffrey Ostrow – Simpson Thacher & Bartlett; Ravi Purohit – Simpson Thacher & Bartlett; Zain Rifat – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Brian Steinhardt – Simpson Thacher & Bartlett; Justin Thekkekara – Simpson Thacher & Bartlett; David Whelan – Simpson Thacher & Bartlett;

Law Firms: Mayer Brown; Ropes & Gray; Shearman & Sterling; Simpson Thacher & Bartlett;

Clients: Altice USA Inc. ; Morgan Stanley Infrastructure Partners;

Author: Ambrogio Visconti