Technicolor gets OK for restructuring plan, wraps €240 million facility

By Taylor Fox

Chicago, July 20 – Technicolor has received indications that it will obtain approval of its financial restructuring plan from a large majority of shareholders at a general meeting scheduled for Monday, according to a news release.

The company also announced that it completed the first tranche of a new money facility in the amount of €240 million on Friday.

The interim financing will be made available on Monday and allocated as follows:

• $110 million for refinancing a $110 million bridge loan due July 31, 2020; and

• €140 million lent to Tech 6 under a New York law bond issue by Tech 6 subscribed by the lenders of the new money, for financing the short-term liquidity needs of the companies. Upon the receipt of the funds, Tech 6 will concurrently loan the total amount of the euro tranche to Technicolor by way of an intragroup loan.

The balance of the new money, about €180 million of principal, net cost and commissions, would be contributed by the end of August, subject to the adoption by the Paris commercial court of the draft accelerated financial safeguard plan approved by the lenders on July 5. A court hearing for approval will be held July 21.

Technicolor is a France-based technology company focused on the media and entertainment sector.

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