Technicolor Creative Studios refinances
March 8, 2023
Technicolor Creative Studios has announced an agreement in principle that provides a framework for rebound of the Company to the benefit of its studios, talents, customers and suppliers.
The Company has reached an agreement in principle on a new financing structure which includes a c.€170 million new money injection. The refinancing would also reduce the financial liabilities of the business by reducing cash interest across all instruments as well as by subordinating €170 million and converting €30 million of existing debt into equity. This would enable Technicolor Creative Studios to address its liquidity needs from Q2 2023 and allows operating cash flow to be focused on operational needs.
A large majority of shareholders (holding above 80 per cent of the capital) and lenders (which represent more than 75 per cent of the debt) are supporting the Company in this refinancing, indicating their financial commitment to, and support for the business and its mission to deliver high quality projects to its customers.
The Agreement in Principle has been approved unanimously by the members of the Board of Directors of the Company and will be submitted for approval to the Commercial Court of Paris by the end of March.
Anne Bouverot, Chairperson, and Caroline Parot, CEO, said: “This new favourable framework reaffirms the strong commitment of all our stakeholders, in particular our shareholders and lenders, and demonstrates their renewed confidence in the long-term prospects of Technicolor Creative Studios. In conjunction with the improvement actions initiated through the Re*imagined Program, this will improve the Company’s balance sheet and profitability, re-establishing its market leading position.”
Christian Roberton, Deputy CEO, said: “Thrilled about this significant milestone, marking a fresh start for Technicolor Creative Studios. This is going to ensure our studios will be fully dedicated to project delivery and continue to be recognised as a world leader of our industry. I would like to thank our teams for their dedication and continuous commitment to our clients in these challenging times.”