100 per cent of RCF and more than 97 per cent of bondholders sign up to binding lock-up agreement.
TalkTalk has announced that additional revolving credit facilities (RCF) lenders and bondholders have entered into the binding lock-up arrangement for its refinancing deal.
Last month, Sir Charles Dunstone, the founder of TalkTalk, agreed a £400 million refinancing deal with the company’s lenders to avert the threat of a debt default.
TalkTalk’s shareholders - who include Dunstone, Ares Management and Toscafund - agreed to inject £65 million of interim funding into the company last month.
Earlier this month, TalkTalk announced that all parties have entered into binding lock-up arrangements, a further capital injection of £170 million was made, with assets currently held separately such as its Virtual1 subsidiary and Ovo and Shell customer bases also being contributed to the group. In total, the refinancing is worth more than £400 million.
Following the announcement, TalkTalk said that, as of 16 September, 100 per cent of the RCF and more than 97 per cent of bondholders have now signed up to the binding lock-up agreement.
The company said that the level of support from lenders means it can now implement the transaction consensually through contractual amendments under the RCF and a consent solicitation and exchange offer, which is expected to be the quickest and most cost-effective implementation route.
TalkTalk thanked the creditors and stakeholders for their ongoing support and said that it looked forward to closing the transaction in the coming months.TalkTalk has announced that it has reached a binding agreement on the terms of its refinancing deal.