JPMorgan Chase has emerged as the lead arranger in a $1.2 billion debt refinancing for Altice USA, targeting the replacement of existing obligations held by TPG and Goldman Sachs. The move underscores ongoing financial restructuring efforts by the telecom operator.
- JPMorgan Chase led a $1.2 billion refinancing for Altice USA
- Debt held by TPG and Goldman Sachs is being replaced
- Maturity dates extended by an average of five years
- Interest expenses reduced by an estimated $43 million annually
- Total leverage ratio improved to 5.1x EBITDA
- Transaction expected to close by mid-February 2026
JPMorgan Chase & Co. has taken a central role in a $1.2 billion refinancing initiative for Altice USA, facilitating the replacement of senior secured debt previously held by private equity firm TPG and investment bank Goldman Sachs. The transaction marks a pivotal step in Altice USA’s strategy to restructure its capital stack amid persistent pressure from high-interest debt burdens and evolving market conditions. The new financing is structured as a senior secured term loan, with JPMorgan serving as sole lead arranger and administrative agent. The refinancing is expected to extend maturity dates by an average of five years, reducing near-term repayment obligations and improving liquidity. While specific interest rates were not disclosed, sources indicate the new loan carries a margin over SOFR that is approximately 150 basis points lower than the prior TPG-Goldman facility. This reduction reflects improved investor confidence in Altice USA’s operational stability following recent cost optimization measures and subscriber retention gains. The deal impacts Altice USA’s balance sheet by lowering annual interest expenses by an estimated $43 million, according to internal financial modeling. It also triggers the early repayment of $800 million in existing debt obligations, effectively reducing the company’s total leverage ratio to 5.1x EBITDA from 5.8x at the end of 2025. The transaction is set to close by mid-February 2026, subject to customary closing conditions. Market participants view the refinancing as a positive signal for the broader telecom sector, particularly for companies with leveraged balance sheets. Investors in Altice USA’s publicly traded stock (ticker: ATUS) have responded favorably, with shares rising 4.2% in pre-market trading following the announcement. The involvement of JPMorgan reinforces confidence in the bank’s ongoing role as a key player in complex corporate debt restructuring across the U.S. market.