(News Bulletin 247) – Technicolor Creative Studios announced on Wednesday that it had reached an agreement in principle for a refinancing of 170 million euros, which should notably include a recapitalization operation.
The image technology specialist indicates that a large majority of shareholders (holding more than 80% of the capital) and lenders (who represent more than 75% of the debt) support the project.
In a press release, TCS explains that the operation should enable it to meet its liquidity needs from the second quarter of 2023 and to focus its cash flows on its operational needs.
This refinancing would be done in particular through the issue of 60 million euros of convertible bonds, the conversion of which will allow holders to hold a total of 33% of the company’s capital.
Must be added to this a senior line of credit of approximately 110 million euros, entirely subscribed by the lenders, who will benefit from share subscription warrants giving the right to 11% of the fully diluted capital.
According to the scheme adopted, the current first-rank creditors would thus hold 44% of the fully diluted capital, while the new lenders would receive 11% of the capital.
The holders of convertible bonds would control 33% of the capital and the current shareholders would retain 12% of the capital, still on a fully diluted basis.
The quotation of the TCS title remained suspended ‘until further notice’ since yesterday evening on the Paris Stock Exchange.
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