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TalkTalk has been struggling with debt for several years, with the total currently standing at nearly £1 billion
TalkTalk has announced that it has signed a binding agreement on a refinancing deal that was first revealed last month.
The deal saw shareholders – including founder Sir Charles Dunstone, Toscafund, and Ares Management – agree to inject an additional £170 million into the business, in addition to the £65 million invested last month.
The deal also included the transfer of assets including Virtual1 subsidiary and the customer bases of Ovo and Shell, bringing the total refinancing to over £400 million.
The agreement will enable TalkTalk to extend the repayment deadlines for its Revolving Credit Facilities (RCF), originally due in November 2024, and its Senior Secured Notes (SSN), which were set to mature in February 2025. The new agreement will push the debt maturities out to September 2027, giving the company more time to shore up its finances.
The deal was expected, with TalkTalk’s Chief Financial Officer James Smith confirming last month that “we are making constructive progress and are confident of a near term agreement which will ensure the group is well capitalised going forward.”
The company will now move forward with implementing this refinancing agreement, with the transaction expected to be completed in the coming months.
In related news, last month it was reported that Macquarie, who had been in discussions to acquire a £450 million stake in TalkTalk’s wholesale unit, PlatformX, had walked away from the deal. Reports have suggested that it could reopen negotiations if TalkTalk’s financial situation improves.
“The Company has entered into a binding lockup agreement in support of the transaction with its major shareholders, RCF banks and a group of SSN holders, which together hold approximately 70% of the Company’s secured debt,” read TalkTalk’s statement.
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