TalkTalk has completed a refinancing deal to avert the threat of a debt default.
Following announcements in August and September, in which progress on the terms of new funding from existing shareholders and the extension of current debt maturities were set out, the company has announced that this refinancing is now proceeding to completion.
As part of the transaction, £235 million of new cash facilities have been made available to TalkTalk by its existing shareholders, who include founder Sir Charles Dunstone, Ares Management and Toscafund.
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.
One hundred per cent of TalkTalk's RCF lenders have approved the terms of the funding and maturity extensions, and the terms of the RCF will be duly amended.
To implement the funding and maturity extensions, the company is required to issue to an exchange offer and consent solicitation document all SSN holders. The document was circulated last week, and is open for acceptance for 20 business days from and including the launch date. The required consent level is 90 per cent, with 96 per cent of SSN holders already entering 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.