Dunstone renegotiates debt deal to give TalkTalk breathing space

Salford Quays headquartered telecoms group TalkTalk has agreed a refinancing package with bondholders and Ares Management Funds.

The deal involves existing shareholders, including founder Sir Charles Dunstone, providing £65m of interim funding to the Group.

This agreement in principle includes provision of £170m of funding, in addition to the initial £65m, upon execution of binding lock-up arrangements between the parties, the contribution of other assets into the Group by its major shareholders and Ares Management Funds, including the Virtual1 business, and the Ovo and Shell branded customer bases, and the extension of the first rolling credit facility and loans maturities to September 2027.

In a statement this morning, TalkTalk said further announcements, including more detailed terms, will be revealed in the coming weeks.

But leadership changes are afoot too, with effect from 1st September.

As previously announced, Dame Tristia Harrison will become a non-executive director of the Group.

James Smith, current Group CFO, will become Group CEO and will also become CEO of PXC, with Tom O’Hagan stepping up to a new role of executive chairman of PXC to focus on strategy and clients.

Susie Buckridge remains CEO of TalkTalk, the Group’s consumer business. Sir Charles Dunstone will continue in his role as Group Chairman.