(Alliance News) - TalkTalk Telecom Group PLC on Thursday said it had successfully upsized and priced GBP110 million worth of 3.875% senior notes due 2025, which will be added to its existing GBP575 million notes.
The Salford, England-based telecommunications firm announced the additional offering of GBP100 million worth of notes due 2025 on Tuesday. However, this has been upsized to GBP110 million as the offering was oversubscribed.
The additional 2025 notes will be treated as a single class with its GBP575 million outstanding 3.875% senior notes.
The additional noted are to be issued at a price of 97.625% under the indenture dated February 2020 governing its outstanding GBP575 million notes.
Proceeds of the offering, expected to close Wednesday next week, will be used to repay GBP100 million of principal amounts drawn under TalkTalk's revolving credit facility and cancel GBP100 million of commitments across the facility and its bilateral revolving facility on a pro rata basis.
Additionally, the funds will help replenish cash on TalkTalk's balance sheet plus costs a, expenses, and fees related to the offering and refinancing transactions.
TalkTalk said: "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."
Shares in TalkTalk were down 0.7% at 97.55 pence in London on Thursday morning.
By Anna Farley; annafarley@alliancenews.com
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