Sir Charles Dunstone, the entrepreneur behind the TalkTalk broadband empire, has struck a £400m deal with its lenders to avert the threat of a debt default.
Sky News has learnt TalkTalk will announce later on Monday that its shareholders – who include Sir Charles – have agreed to inject £65m into the company immediately.
This will be followed by a further injection of £170m, with assets currently held separately such as its Virtual1 subsidiary and Ovo and Shell customer bases also contributed to the group.
In total, the refinancing is worth more than £400m, according to insiders.
Ares Management and Toscafund will also participate in the capital injection.
Follow Sky News on WhatsAppKeep up with all the latest news from the UK and around the world by following Sky News
Tap hereTalkTalk’s bank lenders and bondholders have, in return, agreed to extend looming debt maturities from this November and next February to the autumn of 2027.
The extension will provide TalkTalk, which has nearly four million UK broadband customers, with crucial breathing space to implement the business plans of its PlatformX wholesale network and its consumer business.
More from BusinessTalkTalk is also expected to confirm a series of leadership changes – with chief executive Tristia Clarke becoming a non-executive director and being replaced by James Smith – will take place next month.
Sir Charles will continue as group chairman.
AdvertisementBe the first to get Breaking News
Install the Sky News app for free
TalkTalk declined to comment.