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Altice USA IPO raises nearly $2 billion

Altice USA said in a statement that Walt

Altice USA said in a statement that Walt Disney has threatened to pull popular networks like ESPN, ABC and Disney Channel from its Optimum service. May 23, 2017. Credit: Barry Sloan

Altice USA and two of its investors raised nearly $2 billion Wednesday in an initial public offering with the stock priced at $30 per share, officials said.

The number of shares sold, 63.9 million, was higher than Altice had projected in a securities filing earlier this month. The company had projected a price range of $27 to $31 per share.

Shares in the provider of broadband, cable and telephone services begin trading Thursday on the New York Stock Exchange under the symbol ATUS.

Altice USA will use its portion of the stock sale’s proceeds — about $360 million — to reduce debt, it said in the securities filing.

The company is based in Bethpage but plans to move its headquarters to Long Island City, Queens this year.

Altice USA was formed last year after Netherlands-based Altice N.V. bought Cablevision Systems Corp. of Bethpage and Suddenlink of St. Louis, Missouri. Altice N.V. and its founder, Patrick Drahi, now control Altice USA as owners of more than 70 percent of the stock and 98 percent of the voting power.

Altice USA owns 25 percent of Newsday Media Group.

The company employs 15,300 people nationwide, according to a securities filing Wednesday.

In the IPO, Altice USA sold 12 million shares. Investor BC Partners sold 31.5 million shares, and investor Canada Pension Plan Investment Board sold 20.4 million shares.

Altice USA is renovating its Bethpage office at 1111 Stewart Ave. to make room for employees based at five rented offices near Bethpage that are slated to be closed. The 558,000-square-foot facility will be designated the “core Altice USA Operations Center” for the United States, serving customers in 21 states.

Altice N.V. shares are traded on the Euronext stock exchange in Amsterdam.

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