Contribution of the balance of the New Money facility for an amount of c. €180 million - Update on the business
02 Settembre 2020 - 06:10PM
PRESS RELEASE
Contribution of the balance of the New
Money facility for an amount of c. €180
million
Update on the business
Paris (France), 2 September 2020
– Technicolor (Euronext Paris: TCH; OTCQX: TCLRY)
(the “Company”) is pleased to announce today that,
as planned, all the conditions precedent required in connection
with the contribution of the balance of the EUR 420 million new
financing (the “New Money”) have been granted or
satisfied. In consequence, c. EUR 180 million (in
principal, net of costs and commissions) (the “Balance of
the New Money”) have been made available to Tech 6 (a
wholly-owned subsidiary of the Company). This is pursuant to a New
York law bond issue by Tech 6 subscribed by the lenders of the New
Money, for the purpose of financing the short term liquidity needs
of the Company and its subsidiaries (the “Group”).
Tech 6 has concurrently lend the total amount of the Balance of the
New Money to the Company by way of an intragroup loan.
In consideration of the funding of the Balance
of the New Money, additional security interests have been granted
as security to the lenders of the New Money, in particular a
fiducie (equivalent of a trust under French law) over the
securities of Gallo 8, a subsidiary of the Company.
Additionally, Technicolor announces that, on
July 31, 2020, the U.S. Bankruptcy Court presiding over
Technicolor’s Chapter 15 proceedings granted recognition of the
order of the Commercial Court of Paris dated July 28, 2020
approving Technicolor’s accelerated financial safeguard plan. The
US Bankruptcy Court’s order gives full force and effect to the
French Court’s approval order and prohibits Technicolor’s creditors
from taking any action inconsistent with the accelerated financial
safeguard plan in the United States.
Update on the business:
- Based on business activity during the months of July and
August, the Group remains confident of achieving the outlook
presented in its press release issued on July 30 2020, including
the achievement of cost savings in excess of €160 million during
the year;
- In Production Services, recent discussions with the major US
studios confirm a pick-up in general activity in the film
industry;
- New cinema releases remain on hold at present, which is leading
to a reduction in revenue in DVD Services, but back catalog demand
remains strong;
- Connected Home continues to experience increased demand for
broadband gateway products, especially in North America, as
consumers seek better home broadband and wifi experience.
About Technicolor:
www.technicolor.com
Technicolor shares are admitted to
trading on the regulated market of Euronext Paris exchange
(TCH) and traded in the USA in the form of American Depositary
Receipts on the OTCQX marketplace (OTCQX:
TCLRY).
Investor Relations
Christophe le Mignan: +33 1 88 24 32 83
Christophe.lemignan@technicolor.com
- 09-02-2020_Second tranche_Press Release_VUS