Salford-based broadband giant TalkTalk Telecom Group said on Thursday it priced its offering of £575 million senior notes due 2025 at 3.875%.
“The offering was multiple times over-subscribed, leading to an upsizing from the previously announced £500 million aggregate principal amount,” said TalkTalk.
“The offering is expected to close on 20 February 2020 upon the satisfaction or waiver of customary closing conditions.
“The company intends to use the proceeds of the offering to: (a) redeem the entire aggregate principal amount of its outstanding £400 million senior notes due 2022 and pay certain redemption premium and accrued, but unpaid, interest to holders thereof;
“(b) repay (without cancelling commitments) certain principal amounts drawn under its revolving credit facility agreement;
“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 extending its debt maturity profile and increasing available capacity under its revolving credit facility, as well as reducing cash interest costs …”