Altice USA a leading cable TV under the Optimum brand and telecommunications provider, announced today that it has successfully entered into and funded a groundbreaking $1.0 billion asset-backed term loan facility (“Asset Backed Loan Facility”) through an unrestricted subsidiary. The transaction, executed in partnership with financial giants Goldman Sachs and TPG Angelo Gordon, marks a significant milestone in infrastructure-backed financing.
The Asset Backed Loan Facility is secured by receivables from Altice USA’s Bronx and Brooklyn service areas, as well as key network assets, primarily the company’s Hybrid-Fiber Coaxial (HFC) network, collectively referred to as the “Securitization Assets.” This innovative deal is the first of its kind to securitize portions of an HFC network, setting a new precedent in the telecommunications industry for leveraging infrastructure assets to unlock capital.
“This first-of-its-kind transaction marks a milestone in infrastructure-backed financing by securitizing parts of the Company’s HFC network,” said Dennis Mathew, Altice USA Chairman and Chief Executive Officer. “We are excited to partner with Goldman Sachs and TPG Angelo Gordon on this inaugural transaction and look forward to continuing to execute on our strategy to drive long-term growth and enhance value for our investors, customers, communities, and employees.”
Altice USA, operating under its Optimum brand, is a dominant player in the Bronx and Brooklyn markets, where it serves approximately 695,000 subscribers and passes 1.55 million locations. Across its broader footprint, Optimum reaches nearly 10 million locations and serves over 4 million subscribers, solidifying its position as a leading broadband, video, and mobile services provider in the United States.
The Asset Backed Loan Facility, which matures in January 2031, carries a fixed coupon rate of 8.875% and includes original issue discount, amortization, and other standard features of asset-backed financings. Altice USA retains the flexibility to incur additional indebtedness secured by the Securitization Assets, subject to certain conditions.
This strategic financial move underscores Altice USA’s commitment to optimizing its capital structure while continuing to invest in its network infrastructure to meet growing consumer demand for high-speed connectivity. The partnership with Goldman Sachs and TPG Angelo Gordon highlights the confidence that leading financial institutions have in Altice USA’s operational strength and long-term growth prospects.
The transaction is expected to bolster Altice USA’s ability to enhance its service offerings, expand its network capabilities, and deliver value to stakeholders. As the telecommunications industry continues to evolve, Altice USA’s innovative approach to financing positions it to remain competitive in a rapidly changing market.
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