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.
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).
Christophe le Mignan: +33 1 88 24 32 83