Jul 21, 2024
Drahi’s Altice raised more than £1bn margin loan against BT stake
Altice took out a more than £1bn margin loan against its stake in BT, in a move that underscores the risky borrowing that is now piling pressure on billionaire Patrick Drahi's sprawling telecoms group. The Franco-Israeli billionaire's 24.5 per cent stake in BT was built through substantial loans and derivatives financing, allowing Altice to borrow heavily against the shares, according to people familiar with the situation and loan documents seen by the Financial Times. In January 2022, Altice signed a new margin loan facility with the same three lenders and Deutsche Bank, allowing it to borrow up to £1.5bn against BT shares. Altice later used further collar financing to raise its stake in BT to almost 25 per cent in May 2023, according to one of the people familiar with the terms, who added that the group has since repaid a portion of the margin loan. While Altice is experiencing pressure in debt markets, the four banks behind the BT margin loan are not particularly concerned about their exposure, according to people close to the lenders.
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