Altice USA explores sale of Suddenlink to ease debt burden - source

By Krystal Hu

July 21 (Reuters) - Altice USA Inc. is working with advisors to explore a sale of its regional internet and cable provider Suddenlink Communications, in its latest effort to reduce its debt load, according to a source familiar with the matter.

Altice has hired Goldman Sachs to run the sale process for Suddenlink, which could be valued at $20 billion, including debt, sources added.

Bloomberg first reported the sale on Thursday. Altice, whose share rose 23% following the report, did not respond to a request for comment.

Suddenlink has annual earnings before interest, taxes, depreciation and amortization of about $1.3 billion. The St. Louis-based multiple-system operator (MSO) served primarily customers in the south-central U.S.

Altice acquired Suddenlink for $9.1 billion in 2015, marking a major step for Patrick Drahi's European telecom conglomerate to expand to the U.S. Months later, it bought Cablevision Systems Corp in a $17.7 billion deal.

Altice USA, with about $5 billion of market cap, now sits on over $ 24 billion debt.

In April, Altice announced plans to rebrand Suddenlink under the company's "Optimum" brand.

(Reporting by Krystal Hu in New York; editing by Diane Craft)