Technicolor SA announced yesterday that it has completed its €1.2 billion debt restructuring after a court in Paris in July approved the financial safeguard plan. The deal cuts the firm’s debt by roughly €660 million.

The company yesterday finalized and executed the documentation, implementing a new term credit for roughly €574 million due Dec. 31, 2024, from the reinstatement of a portion of the firm's existing debt.

The remaining €660 million of non-reinstated debt has been partially repaid in cash and equitized following completion of a capital increase with shareholders.

The transaction results in lenders including Credit Suisse AM, Barings, Bain Capital Credit, Alcentra (Jubilee), Farallon, GS, Angelo Gordon and Bpifrance Participations becoming new owners of the business.

Lenders also provided around €457 million (including €37 million of transaction fees) of new money, with Tech 6 and Technicolor USA Inc. (both subsidiaries of Technicolor S.A.) issuing the first €240 million tranche of the new financing in July 2020. Tech 6 issued the second €180 million tranche on Sept. 2, 2020.

As for Technicolor's other existing loans, the group's $125 million asset-based loan signed in November 2017 will be extended to December 2023.

Technicolor’s restructuring is the culmination of a process that got underway in earnest in May, when the firm said it would not proceed with a €300 million rights issue and would seek a refinancing instead.

Based in France, Technicolor provides content technology and services for the communication, media, and entertainment industries.