Over the past few months TalkTalk has been in discussion with its lenders about refinancing its debt amidst maturity of previous loans and higher than expected interest rates pushing up debt interest costs to the business. TalkTalk founder Sir Charles Dunstone put in additional funding, unblocking the way for a solution. Its long time auditor Deloitte resigned last month, with the business stating this was a “planned rotation”.
TalkTalk has today announced it’s proceeding to complete the re-financing.
“As part of the transaction, £235m of new cash facilities have been made available to the Company by its existing shareholders. At completion, certain existing shareholders will also contribute additional assets to the company. Revolving Credit Facilities (“RCF”) and Senior Secured Notes (“SSN”) will be replaced with new facilities maturing in September 2027 and March 2028.
100% of the Company’s RCF lenders have approved the terms of the funding and maturity extensions and the terms of the RCF will be duly amended.
In order to implement the funding and maturity extensions, the Company is required to issue to all SSN holders an Exchange Offer and Consent Solicitation document which was circulated today and which is open for acceptance for 20 business days from and including the launch date. The necessary consent level is 90%, and 96% of SSN holders have already entered into a Lock-Up Agreement to support the transaction.
Completion of the refinancing facilities is expected to follow shortly after the 20 business days open for acceptance of the Exchange Offer and Consent Solicitation document.”
TalkTalk Statement
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