Technicolor expects to launch new debt issuance in September

By Sara Rosenberg

New York, July 23 – Technicolor plans to launch a new debt issuance in September to help fund its acquisition of Cisco’s customer premises equipment business, company officials said in a conference call on Thursday.

The company has received a formal commitment from its banks for the debt, officials continued.

Under the agreement, Cisco’s customer premises equipment business is being purchased for $600 million, subject to customary closing adjustments.

Of the total purchase price, $150 million will be funded through the issuance of new Technicolor stock to Cisco and the remaining $450 million will be financed with the new debt issuance and cash on hand.

The company expects the debt to have limited impact on its current leverage ratios.

Closing is expected by the end of the fourth quarter or in the first quarter of 2016, subject to regulatory approvals and customary conditions.

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

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