Continued improvement of the balance sheet and significant annual interest savings
Paris (France), April 28, 2014 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) announces today that it has fixed the terms and conditions of its repricing transaction launched in mid-April.
Technicolor has successfully repriced $884 million and €321 million of senior secured term loans issued by Tech Finance & Co. S.C.A. and maturing in 2020 at new pricing of Libor / Euribor + 450bps, subject to a 1% Libor / Euribor floor. This represents a significant reduction from the previous pricing of Libor / Euribor + 600bps / 625bps, subject to a 1.25% Libor / Euribor floor. The average weighted interest rate is reduced to 5.50% from 7.33%.
In addition, in order to pursue further deleveraging, Technicolor has decided to prepay €50 million of this debt. The repricing and the prepayment will close on April 30.
Following this transaction and the reimbursement at the end of May 2014 of the group’s remaining legacy debt due 2016/2017, Technicolor’s total pro-forma senior gross nominal debt will be approximately €900 million, a reduction of approximately €170 million versus December 31, 2013. The reduced interest rate and prepayments will result in annual cash interest savings of approximately €26 million.
The transaction has also allowed the group to diversify its lender base and to eliminate hard call protection.
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 (TCLRY).
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