PARIS, France – Technicolor announces today that the prolonged uncertainty in global market conditions, as well as the impact of the Covid 19 crisis on its business in the short term, have limited the ability of the Company to launch the previously announced €300 million Rights Issue. It has therefore engaged in discussions with some of its financial lenders and third party investors in an effort to obtain new financing (the "New Financing"). To date, the Company has received indicative offers from a third party investor and from one of the existing lenders of the Group, and negotiations are on-going.
The New Financing, which would amount to c. € 400 million, would allow the Company to (i) pay off the $110 million short-term facility granted by JP Morgan in March 2020 and due on July 31st 2020 (the "Bridge Facility") and (ii) finance the liquidity needs of the Group as from July 2020.
In addition to this New Financing, the Company intends to implement a long term sustainable financial structure for the Company, including by way of debt to equity swap, depending of course on the discussions with its existing creditors in this respect.
The market will be informed in due course of the outcome of these discussions.
Read the full announcement here.