Technicolor has announced that it has successful completed its refinancing transaction. As a result, the company will be able to borrow new funds at a lower interest rate, effectively extend its debt maturity until 2020 and benefit from significantly greater covenant flexibility.
According to Technicolor, “Tech Finance purchased an aggregate principal amount of €905 million of Technicolor’s outstanding senior debt in the offers to purchase, corresponding to almost all of the outstanding notes and 61% of Credit Agreement participations. The average nominal interest of the purchased debt amounted to 8.4%, while the average nominal interest of the total existing senior debt amounted to 8.2%.”
It adds: “the remaining existing senior debt not held by Tech Finance, amounts to €282 million with a bullet debt maturing in 2017 in the amount of €218 million (compared to €890 million before the refinancing).
“As a result of the refinancing transaction, the total consolidated amount of senior gross debt bears interest at an average nominal rate of 7.4%, an 80 basis point improvement, leading to a pro-forma reduction of €14.8 million in overall annual interest charges. The company’s debt structure is now based almost entirely on loans and the final maturity of the majority of debt has been extended to 2020.”
