(Alliance News) - TalkTalk Telecom Group PLC on Tuesday announced an additional offering of GBP100 million in 3.875% senior notes due in 2025 to its existing GBP575 million notes.
The telecommunications provider based in Salford, England, said the additional 2025 notes will be treated as a single class with its GBP575 million outstanding 3.875% senior notes.
TalkTalk Telecom said it intends to use the proceeds to repay GBP98 million of principal amounts drawn under its revolving credit facility, and cancel GBP100 million of commitments across such revolving credit facility and its bilateral revolving credit facility. In addition to this, proceeds will pay costs, expenses and fees in relation to the offering and refinancing transactions.
"The offering and related transactions are expected to strengthen the company's financial position by refinancing a significant portion of its outstanding debt under the revolving credit facility with additional notes, which have a longer maturity," said TalkTalk Telecom.
In December, TalkTalk Telecom agreed to a GBP1.11 billion takeover offer by Tosca IOM Ltd, a new company formed by asset manager Toscafund Asset Management LLP and Penta Capital LLP.
Toscafund currently holds a 29% stake in the FTSE 250 firm.
Under the acquisition's terms, Tosca IOM will acquire TalkTalk Telecom for 97 pence per share, reflecting a 0.8% premium to the group's closing price of 96.25p on December 16. The acquisition is expected to be completed within the first quarter of 2021.
Shares in TalkTalk Telecom were down 0.1% at 97.75 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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