Technicolor refinances debts
June 24, 2020
By Chris Forrester
Technicolor has reached an agreement with lenders to restructure itself and provide the company with some €420 million in a new financial structure. The plan is due to be endorsed on July 20th at an extraordinary general meeting.
The new lenders include Bain Capital, Alcentra and BpiFrance Participations and the scheme calls for debt equalisation (debt for equity) worth a total €660 million in term loans and revolving credit. The company already has support from 65.77 percent of its lenders.
Technicolor CEO Richard Moat, in an interview with Les Echos, that the new agreement would enable the business to achieve a significant debt reduction, in the context of a difficult year and lower-than-expected revenues. Technicolor had to scrub a previous plan for a €300 million rights issue in May.
The company has also issued new financial guidance for the next two years. Under its ‘base case’ forecast it expects to see an EBITA loss of €64 million this year and then more positive news for 2021 and 2022 (€105 million and €202 million).
Group revenues are expected to fall some 17.9 per cent this year in its ‘base case’ guidance.