Receipt of new indicative financing offers
RECEPTION OF NEW INDICATIVE FINANCING OFFERS
NEGOTIATIONS WITH INVESTORS AND CREDITORS TO IMPLEMENT SUCH NEW FINANCING
SOLICITATION OF CREDITORS RELEVANT TO A PETITION FOR THE APPOINTMENT OF A CONCILIATOR
Richard Moat, CEO of Technicolor, said:
“On February 13, we announced our 2020-2022 strategic plan and a c. € 300 million rights issue. Since then, the world and our industries have faced an unprecedented crisis due to the Covid-19 pandemic. We work tirelessly to guarantee the safety of our employees, while ensuring the good continuity of our activities. However, the current situation has limited our ability to launch the planned rights issue and we have therefore recently started discussions with some of our creditors and with third party investors to obtain new financing of 400 million euros more suited to the current situation of the Group. To facilitate the implementation of this financing, we are now seeking the consent of our creditors to have the possibility of opening a conciliation procedure. This additional financing, combined with a restructuring of our balance sheet, should strengthen the Group and its capacity to serve its customers and to do business with its suppliers over the long term. As long as this is ongoing, business will continue as usual, with no impact on our operations and the quality of service we provide to our customers, and we intend to maintain our workforce of talented people. to enable delivery of all of our services and products. . “
Paris (France), May 26, 2020 – Technicolor (Euronext Paris: TCH; OTCQX: TCLRY) (the “Company”) Announces today that prolonged uncertainty in global market conditions, as well as the impact of the Covid 19 crisis on its short-term business, have limited the Company’s ability to initiate rights issuance of 300 million euros previously announced. It has therefore initiated discussions with some of its financial lenders and third party investors with the aim of obtaining new financing (the “New funding”). To date, the Company has received indicative offers from a third party investor and one of the Group’s existing lenders, and negotiations are underway.
The new funding, which would be equivalent to c. 400 million euros, would allow the Company to (i) repay the short-term facility of $ 110 million granted by JP Morgan in March 2020 and due on July 31st 2020 (the “Bridge installation”) And (ii) finance the Group’s liquidity needs from July 2020.
In addition to this New Financing, the Company intends to put in place a long-term sustainable financial structure for the Company, including by swapping debt into shares, of course based on discussions with its existing creditors. in this regard.
The market will be informed in due course of the outcome of these discussions.
In this context, in order to facilitate exchanges with all stakeholders, the Company wishes to have the possibility of requesting the opening of a conciliation procedure in France on Technicolor SA, amicably and consensually, in order to facilitate exchanges with its creditors and the implementation of the New Financing under the aegis of a conciliator appointed by the court. This would require the prior approval of the majority of the creditors concerned, in accordance with the applicable credit facilities (as defined below).
Consequently, the Company announces today that it is seeking the consent of these creditors to allow the appointment of a conciliator (the “Solicitation”). The purpose of the solicitation is to obtain the consent, by the required majority, (i) of the lenders under the FCR, (ii) of the lenders under the Term Loan B, (iii) of the lenders under the Facility ABL, and (iv)) the lenders under the bridge facility, so that the company would have the option, if it so desires, to request the appointment of a conciliator, without such an action constituting an event of default under each of the RCF documents, the term loan B, the ABL facility and the bridging facility.
“RCF»Refers to the € 250 million revolving credit agreement dated December 21, 2016 between, among others, the Company, Natixis as agent and Citibank NA, London Branch as security agent (as amended , modified, supplemented or amended and updated from time to time).
“Term loan B»Refers to c. Credit agreement of € 1 billion (which includes € 755 million in term loans and $ 300 million in term loans) dated December 6, 2016, by and between the Company, Citibank NA, London branch , as collateral agent, JP Morgan Europe Limited, as administrative agent, JP Morgan Limited and Citigroup Global Markets Limited, as associate bookkeepers, and the lenders and other parties being there from time to time (such as modified, modified, supplemented or amended and updated from time to time).
“ABL installation“Refers to the USD 125 million credit agreement, dated November 6, 2017, by and between Technicolor USA, Inc., a Delaware corporation (“Technicolor United States”), Wells Fargo Capital Finance, LLC, as agent and the lenders and other parties therein from time to time (as amended, modified, supplemented or modified and updated from time to time).
“Bridge installation“Means the $ 110 million credit agreement, dated March 5, 2020, by and between Technicolor USA, JP Morgan Chase Bank, NA, as agent and the lenders and other parties from time to time parties thereto ( as modified, modified, supplemented, or modified and updated from time to time).
“Credit facilities” means, collectively, the FCR, the term loan B, the ABL facility and the bridging facility.
The solicitation will expire at 5:00 p.m. New York time on May 28.e, 2020, unless extended by the Company.
|Annual General Meeting of Shareholders||June 30, 2020|
|First half financial results||July 30, 2020|
Disclaimer: forward-looking statements
This press release contains certain statements that constitute “forward-looking statements”, including, but not limited to, statements that are predictions or indicate future events, trends, plans or objectives, based on certain assumptions. or which are not directly related to historical or current events. facts. These forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from future results expressed, anticipated or implied by such statements. prospective. For a more complete list and description of these risks and uncertainties, refer to Technicolor’s filings with the Autorité des marchés financiers.
Technicolor shares are listed on the Euronext Paris (TCH) stock exchange and traded in the United States on the OTCQX marketplace (OTCQX: TCLRY).
Christophe le Mignan: +33 1 88 24 32 83