What Happened?

Shares of telecommunications and cable services provider Altice USA (NYSE: ATUS) jumped 4.3% in the morning session after its Lightpath unit announced plans to sell as much as $2.8 billion of asset-backed securities. The securities would be backed by fiber networks, including infrastructure like conduit and fiber optic cables, as well as customer agreements, according to a filing with the New York Public Service Commission. This move is seen as a way for the parent company, Altice USA, to manage its significant debt load, which includes $7.2 billion due in 2027 and another $5.4 billion the following year. The company has been exploring ways to restructure its roughly $25.3 billion debt pile. This asset-backed sale could provide a much-needed infusion of capital to address these upcoming maturities and improve the company's financial flexibility.

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What Is The Market Telling Us

Altice’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Altice is up 14.8% since the beginning of the year, but at $2.72 per share, it is still trading 12.5% below its 52-week high of $3.11 from January 2025. Investors who bought $1,000 worth of Altice’s shares 5 years ago would now be looking at an investment worth $117.14.

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