TalkTalk has this morning confirmed it has reached a £400 million deal with lenders and shareholders to avoid the firm entering default.
The deal will buy the internet and network provider time to resolve its underlying financial troubles by extending the group’s debt maturities to 2027 – avoiding an ugly default.
The deal will see TalkTalk’s shareholders, led by founder Sir Charles Dunstone, as well as Toscafund and Ares Management, agreeing to immediately inject £65m into the company, with a further £170m to follow.
Some leadership changes will occur, with CEO Tristia Clarke becoming a non-executive director in September 2024 and being replaced by James Smith (current group CFO). Dunstone will remain Group Chairman.
The £235m capital injection will be complemented by an asset package worth roughly the same value to entice lenders, which is expected to bundle-in wholesaler Virtual1 and the customer bases acquired from SSE Broadband (Ovo) and Shell Energy (here), and taking the overall value of the deal to around £400m