Technicolor announced the successful completion of its refinancing transaction which allows them to borrow new funds at a lower interest rate. The transaction will effectively extend the company's debt maturity profile to 2020 and will gain a benefit from significantly greater covenant flexibility.
Tech Finance has accepted all notes tendered and all loans submitted in accordance to its offers to purchase. The company has funded the purchasing capabilities of Technicolor with EUR838 million set under a new term loan with an average nominal interest of 7.3%.
Tech Finance purchased EUR905 million of Technicolor's outstanding senior debt in the offer to purchase. The amount corresponded to almost all of the outstanding notes and 61% of Credit agreement participations of Technicolor.
The refinancing transaction provided additional flexibility for Technicolor. Many of the existing debts of the company like operating and financial pledges have been removed, while other terms like mandatory prepayments requirements and set economic terms remained the same.
Frederic Rose, CEO of Technicolor said, "The successful completion of our refinancing, notwithstanding challenging financial market conditions, marks another important step in Technicolor's financial structure improvement. We have been able to reduce our average interest expense, effectively extend the maturity of our debt, and gain greater operating flexibility to deliver on our Amplify 2015 objectives."
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