Earlier this year it was revealed that Macquarie was in advanced talks to buy a stake in the wholesale arm of TalkTalk, now called PlatformX Communications.
TalkTalk currently has a debt pile of around £1 billion and proceeds from a potential sale would have been used to reduce the company’s debt amid a wider breakup.
The deal would have enabled TalkTalk to refinance two tranches of credit as deadlines for both loom.
The more pressing of those is reportedly a revolving credit facility, a business’ overdraft, worth around £330 million that is held by a group of banks and must be paid off or renegotiated by November of this year.
The second is £685 million in corporate bonds Dunstone and Toscafund loaded onto the company as part of a deal to take it off of the stock market, which matures in February 2025.
According to The Sunday Times, TalkTalk is focused on securing an amend-and-extend agreement with lending banks, accompanied by a £200 million injection from Dunstone and Toscafund.
James Smith, Talktalk’s chief financial officer, said: “Funding proposals to refinance the group’s balance sheet are under active discussion.
“We are making constructive progress and are confident of a near-term agreement which will ensure the group is well capitalised going forward.”
