UPDATE 1-Altice Europe overhauls capital structure to manage debt

(Adds savings target)

PARIS, Jan 24 (Reuters) - Telecoms and cable group Altice Europe, which has been looking to reduce its debt burden, has overhauled its capital structure to extend the maturity of its borrowings and cut costs.

The company said the move would create two new diversified funding pools, one for its Altice France arm and another for its Altice International operations.

Its Altice France unit priced 1.6 billion euros ($1.78 billion) equivalent of 8-year senior notes and 500 million euros of 5-year senior secured notes.

“The simplification of the group capital structure has been a long-standing objective for the group and as such this transaction is a key milestone,” said Altice Europe chief financial officer Malo Corbin.

The company, which is targeting 700 million euros in savings per year, said it had achieved 363 million euros in savings with the move.

Altice Europe said in December it would sell a 50% stake in its Portuguese fibre network to Morgan Stanley Infrastructure Partners to help pay down its debt. ($1 = 0.9014 euros) (Reporting by Matthieu Protard; Editing by Sudip Kar-Gupta and Jan Harvey)