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An alticeone cable box

Suddenlink - Cablevision (Altice USA)

www.optimum.com
Region:North America
Sector:TMT
Transaction Value:US$6,454m / US$17,094m

Realised

Suddenlink is the 7th largest US cable TV company focused mainly on smaller markets in the mid-west and south of the country. Suddenlink specialises in cable-television, high-speed internet, broadband phone, home security and advertising.

In July 2012, BCEC IX, CPP Investment Board, co-investors, and management acquired Suddenlink in a proprietary transaction.

Investment Thesis

Market-leader with Strong Competitive Position: No infrastructure-based competition in c. 93% of its footprint; Structurally offers customers more meaningful bandwidth speeds than competition; Operates in attractive geographic markets.

State-of-the-art Infrastructure: Suddenlink was among the best-invested cable networks in the US; In 2012, completed bandwidth upgrade and expansion capital plan.

Significant Growth Prospects: Introduction of successful promotional offers to drive customer acquisitions and reduce churn; Announced strategic partnership with Sprint to provide mobile voice and data services to Altice USA customers.

Experienced Operating Team: An experienced management team, together with the deal team, identified previously untapped opportunities to drive growth.

Proprietary deal in familiar sector: Previous success in the sector with investments in Unitymedia in Germany and Com Hem in Sweden; Exit optionality (IPO or trade sale).

In December 2015 Suddenlink was sold to Altice S.A. with BCEC IX and co-investors retaining a significant stake in the business. At the time of the sale Suddenlink had 1.5 million residential and 90,000 business subscribers.

Soon after, Altice acquired Cablevision in June 2016, the leading cable operator in the New York metropolitan area, which represents an attractive US cable market characterised by affluence and population density. BCEC IX exercised the option to participate pro rata in the further development of the business, which was renamed Altice USA and is now the number four cable operator in the US with c. 4.6m customers across more than 20 states.

Altice USA IPO-ed in June 2017, and trades on the NYSE under the symbol "ATUS".

BCEC IX and co-investors have sold stock since the IPO.

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Team Involved

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