United Kingdom: TalkTalk strikes new refinancing agreement in UK

TalkTalk has struck a refinancing deal with lenders in the UK worth £400 million. This deal will enable TalkTalk to alleviate fears it would default on payments and extend its debt maturities to 2027. A group of SSN holders, a group of RCF banks, Ares Management Funds, and the company’s major shareholders have agreed on the refinancing terms.
 

TalkTalk shareholders will inject £65m into the company immediately and the provision of a further £170m ($217m) will be put forward. The agreement also includes the contribution of other assets into the group by its major shareholders and Ares Management Funds, including the Virtual1 business, the Ovo, and Shell branded customer bases.

Dame Tristia Harrison will become a non-executive director of the group, while James Smith, current group CFO, will become group CEO, in addition to CEO of PXC. Tom O’Hagan will become executive chairman of PXC to focus on strategy and clients. Susie Buckridge remains CEO of TalkTalk, the group’s consumer business. Sir Charles Dunstone, founder of the company, will remain as group chairman.