Altice USA has secured a $1 billion asset-backed term loan facility in partnership with Goldman Sachs and TPG Angelo Gordon.

According to the company, the facility has been funded through an unrestricted subsidiary.

The asset-backed loan facility is secured by certain receivables covered by Altice USA's Bronx and Brooklyn service area and network assets, primarily its Hybrid-Fiber Coaxial (HFC) network.

“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.

Matthew added that the facility will help the company to drive value for Altice's investors, customers, communities, and employees.

Altice's Bronx and Brooklyn service area spans 1.55 million locations and consists of around 695,000 subscribers.

The company provides services via its Optimum brand, which has passed in total close to 10 million locations and serves more than four million subscribers across large parts of the US.

Earlier this year, Bloomberg reported that talks between Altice USA and its creditors over plans to restructure its balance sheet broke down due to market volatility. Altice had been looking to reduce its $25 billion debt pile.

Altice USA was previously a subsidiary of Altice, a company owned by French billionaire Patrick Drahi, but split from the telco into a separate business in 2018.

Altice USA noted that the asset-backed loan facility matures in January 2031, and has a fixed coupon of 8.875 percent, with original issue discount, amortization, and other features customary of asset-backed financings.