Technicolor completes refinancing

French technology company Technicolor has completed its refinancing, with investment firm Tech Finance purchasing an aggregate principal amount of €905 million of Technicolor’s outstanding senior debt.

Technicolor said the move allows it borrow new funds at a lower interest rate and extends the maturity of its debt – which is now based almost entirely on loans – until 2020.

With the refinancing, the total consolidated amount of senior gross debt bears interest at an average nominal rate of 7.4%, an 80 basis point improvement, leading to a pro-forma reduction of €14.8 million in overall annual interest charges, Technicolor said.

“The successful completion of our refinancing, notwithstanding challenging financial market conditions, marks another important step in Technicolor’s financial structure improvement. We have been able to reduce our average interest expense, effectively extend the maturity of our debt, and gain greater operating flexibility to deliver on our Amplify 2015 objectives,” said Technicolor CEO Frederic Rose.