TalkTalk Telecom Group plc (LON:TALK) has announced that on 27 January 2021 it priced its offering of £110 million in aggregate principal amount of 3.875% Senior Notes due 2025. The Additional Notes will be issued at a price of 97.625% under the indenture dated 20 February 2020 governing the Company’s outstanding £575 million 3.875% Senior Notes due 2025 and will be consolidated and treated as a single class therewith. The Offering was over-subscribed, leading to an upsizing from the previously announced £100 million aggregate principal amount.
The Offering is expected to close on 3 February 2021. TalkTalk Telecom intends to use the proceeds of the Offering to: (a) repay £100 million of principal amounts drawn under its revolving credit facility (and cancel £100 million of commitments across such revolving credit facility and its bilateral revolving credit facility, on a pro rata basis); (b) replenish cash on balance sheet; and (c) pay costs, expenses and fees in relation to the Offering and such refinancing transactions. The Offering and related transactions are expected to strengthen the Company’s financial position by refinancing a significant portion of its outstanding debt under the revolving credit facility with Additional Notes, which have a longer maturity.
There will be no public offering of the Additional Notes. The Additional Notes are being offered and sold in offshore transactions outside the United States in compliance with Regulation S under the U.S. Securities Act of 1933, as amended. The Additional Notes may not be offered, sold or delivered within the United States (as defined in Regulation S under the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act.
