TalkTalk Wins Enough Creditor Support for Consensual Refinancing

Published 17 September 2024, 08:09:27.45 GMT

By Giulia Morpurgo

(Bloomberg) -- TalkTalk Telecom Group said it had received sufficient consent from its creditors to implement its refinancing via consensual exchanges, according to a notice sent to creditors on Monday and seen by Bloomberg News.

* 100% of the revolving credit facility lenders and over 97% of bondholders had signed up to a lock-up agreement as of Sept. 16

* That means the company can implement the transaction via contractual amendments of the RCF and a consent solicitation and exchange offer, according to the statement

* Lucror Analytics’ deputy head of Europe research, Jayanth Kandalam, wrote that “we view the development positively, as TalkTalk will now be able to execute the restructuring process quickly.”

** “Even if the liquidity shortage is successfully addressed, however, we would maintain our overall cautious view on TalkTalk given its fairly weak market position in the UK,” the analyst said