Continued improvement of financial flexibility and additional annual interest savings
Paris (France), 3 June 2015 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today that it has fixed the terms and conditions of its repricing transaction launched in mid-May.
Technicolor has successfully repriced $763 million and €301 million of senior secured term loans issued by Tech Finance & Co. S.C.A. maturing in 2020 at new pricing of Libor / Euribor + 400bps, subject to a 1% Libor / Euribor floor. This represents a 50bps reduction from existing pricing of Libor / Euribor + 450bps, subject to a 1% Libor / Euribor floor. The average weighted interest rate is reduced to 5.00% from 5.50%. The repricing is expected to close on 5 June. The reduced interest rate will result in around €5 million of annual cash interest savings.
The transaction also allowed the Group to gain additional operating flexibility through certain amendments to the Term Loan facilities. In the context of its strategic plan Drive 2020, Technicolor intends to seize external growth opportunities which will be made easier through the increase of its investment capacity in joint-ventures and reduced restrictions on raising new debt. Moreover the gross debt to EBITDA financial covenant has been revised upward to 4.0x from the previous level of 3.5x. Technicolor also increased the dividend payment basket which now amounts to €150 million between the closing date of the repricing and June 2020.
Technicolor, a worldwide technology leader in the media and entertainment sector, is at the forefront of digital innovation. Our world class research and innovation laboratories enable us to lead the market in delivering advanced video services to content creators and distributors. We also benefit from an extensive intellectual property portfolio focused on imaging and sound technologies, based on a thriving licensing business. Our commitment: supporting the delivery of exciting new experiences for consumers in theaters, homes and on-the-go. www.technicolor.com
Technicolor shares are on the NYSE Euronext Paris exchange (TCH) and traded in the USA on the OTCQX marketplace (OTCQX: TCLRY).
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