Investment major KKR & Co. Inc. (NYSE:KKR) has agreed to provide a non-recourse financing facility of £75 million ($93.54 million) to TalkTalk Telecom Group Plc, a UK-based Internet service provider. The announcement was made on Friday, marking a significant financial boost for the telecom company.
The financing facility, secured by certain accounts receivables originated by TalkTalk and its subsidiaries, is set to replace a pre-existing £75 million facility that reaches maturity this month. This new agreement will grant TalkTalk access to additional liquidity for an approximate term of three years.
Giacomo Picco, a Managing Director at KKR, expressed satisfaction over the deal on Friday. "We are pleased to use our experience in receivable financing globally to support TalkTalk with capital that will help the company continue to grow and connect consumers and businesses across the United Kingdom," he stated.
Funds and accounts managed by KKR's credit business were reported to be the ones agreeing to provide the financing facility. The move indicates KKR's continued commitment and confidence in TalkTalk's potential for growth and its role in connecting businesses and consumers across the UK.
Demica served as an advisor to TalkTalk during this process. In addition, they will act as the reporting and calculation agent for the program moving forward, ensuring adherence to the terms of the agreement.
The financing deal marks a significant step for TalkTalk in its pursuit of growth and expansion within the UK market. With this additional capital, the company is better positioned to continue delivering its connectivity services across the nation.
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