Altice USA's Lightpath Plans $28B ABS Issuance to Tackle $126B Debt

Altice USA Inc.'s subsidiary, Cablevision Lightpath LLC, is planning to issue up to $28 billion in asset-backed securities (ABS). This initiative is designed to address the significant debt obligations that Lightpath is facing. According to documents filed with the New York Public Service Commission on July 3, these securities will be supported by the company's fiber network assets, including pipelines, cables, and customer agreements.

Lightpath is currently under substantial financial strain, with $72 billion in debt maturing in 2027, followed by an additional $54 billion due the following year. To alleviate this financial pressure, Lightpath is actively seeking financing through the issuance of ABS. This strategy allows the company to leverage its valuable fiber network assets to secure the necessary funds.

The decision to issue ABS comes at a critical time for Altice USA, which has been engaged in significant debt restructuring efforts. Earlier this year, the company was involved in negotiations with creditors to restructure its $253 billion debt portfolio. However, these discussions were suspended in April due to market volatility caused by trade policy changes.

The market for ABS backed by infrastructure assets such as fiber cables has seen rapid growth in recent months. This trend underscores the increasing interest in using such securities as a viable financing option for companies with substantial infrastructure investments. The issuance of these securities by Lightpath is expected to provide the company with the financial flexibility needed to manage its debt obligations effectively.

The move by Lightpath to issue ABS is part of a broader strategy to address its debt challenges and ensure long-term financial stability. By leveraging its fiber network assets, the company aims to secure the necessary funds to meet its debt obligations and continue its operations without disruption. This approach not only helps Lightpath manage its financial pressures but also positions the company to take advantage of the growing market for infrastructure-backed ABS.