TalkTalk, the UK broadband provider, has secured a £400 million deal with its lenders to avoid the prospect of a debt default. The deal will see Sir Charles Dunstone and other shareholders inject £65 million into the business immediately, followed by a further £170 million. In addition, its subsidiary Virtual1 and internet brands Ovo and Shell will be integrated into the company.
Lenders and bondholders have agreed to extend existing debt deadlines in November 2024 and February 2025 to September 2027. “The proposed transaction will leave the Company well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk, continuing to capitalize on their strong positions in the market,” TalkTalk said in a statement.
The company previously held talks with Virgin Media and Sky regarding the sale of its consumer and business divisions. A number of management changes will take place from September 1st. As previously announced, Dame Tristia Harrison will become a non-executive director of the Group. James Smith, the current Group CFO, will become Group CEO and CEO of PXC, with Tom O’Hagan taking on the new role of executive chairman of PXC to focus on strategy and clients. Susie Buckridge will remain CEO of TalkTalk, the Group’s consumer business. Sir Charles Dunstone will continue in his role as Group Chairman.