Last month, the telecom giant’s founder, Sir Charles Dunstone, secured a £400 million refinancing agreement with TalkTalk lenders to avoid a potential debt default.
Meanwhile, shareholders including Dunstone, Ares Management and Toscafund, contributed £65 million in interim funding to the company last month.
An additional £170 million capital was also made last weekend as all parties entered a binding lock-up arrangement.
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The total refinancing package exceeds £400 million, the company revealed.
In return, TalkTalk's bank lenders and bondholders, holding about 70% of the company’s secured debt, have agreed to extend two debt maturities, originally set for November and February, until September 2027.
According to the company, the move will provide strong financial backing to support the strategic plans of both PlatformX Communications and TalkTalk, allowing the company to maintain its strong market position.
The agreement comes as the group deals with its approximately £1 billion debt burden, which in 2023 led to a plan to split the group into three separate entities—TalkTalk Consumer, TalkTalk Business Direct and the wholesale-focused PlatformX Communications.
During this time, the group also worked to reduce costs, such as marketing expenses, and monetise assets, including the sale of IP addresses.
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