Technicolor has announced plans to raise $330 million in Senior Notes due 2020 and €745 million of Term Loans that fall due in 2020.
As of May 31, 2013, Technicolor had senior secured debt amounting to €1,186 million with an average nominal interest rate of 8.20%.
The French tech firm is seeking the consent of its creditors for the plan that will run through Tech Finance & Co S.C.A., an independent, stand-alone special-purpose vehicle, which will purchase the outstanding debt.
Frederic Rose, chief executive officer of Technicolor said: “This refinancing is a great opportunity for Technicolor to reduce its average interest expense, extend the maturity profile of its debt, and gain greater operating flexibility. This transaction is an important new step for the company as it will further improve its financial structure and benefit from lighter operational and financial covenants.”
The offer closes on July 15, 2013.
