Technicolor is seeking €400 million in new financing after putting its planned rights issue on hold because of the coronavirus pandemic.
The company had previously announced plans to launch a €300 million rights issue, however it said the pandemic has limited its capacity to launch as planned. Instead, Technicolor has entered into discussions with some of the company’s creditors and third party investors to obtain €400 million that it said will be “more adapted” to the current situation.
Technicolor added that the new financing would enable it to pay off the $110 million short-term facility granted by JP Morgan in March 2020 and due on July 31st 2020 as well as finance its liquidity needs as from July 2020.
“The current situation has limited our capacity to launch the envisaged rights issue, and so we have recently entered into discussions with some of our creditors and with third party investors to obtain a new €400 million financing more adapted to the Group’s current situation. To facilitate the implementation of this financing, we are now soliciting consents from our creditors to have the option to open a Conciliation proceeding,” said Richard Moat, Technicolor’s chief executive office.
“This additional financing, together with a restructuring of our balance sheet, should reinforce the Group and its ability to serve its clients and trade with its suppliers in the long term. Whilst this is in progress, the business will continue as usual, with no impact on our operations and the quality of service we deliver to our clients, and we intend to maintain our workforce of talented people to enable the delivery of all our services and products.”