Technicolor seeks consents to amend credit documents for flexibility

By Jennifer Chiou

New York, Oct. 5 - Technicolor announced that in order for it to take advantage of "potential strategic opportunities and optimize its portfolio of activities to strengthen its business profile," it is looking to creditors to consent to proposed changes to amend credit documents.

According to a company news release, Technicolor plans to take part in the technology industry`s consolidation trends.

As it stands, the company said that its debt documentation restricts its strategic flexibility to execute on any material industry consolidation opportunities.

Technicolor has requested that its senior creditors agree to technical modifications to its credit documents, mainly related to joint ventures, disposals and acquisitions, in order to increase this flexibility.

Majority approval is required, and the company said that it expects the process to be completed by the end of October.

Under the company's consent solicitation, all financial covenants and the main terms and conditions of the debt will remain unchanged, the release noted.

At the end of last year, the company said it was to exchange tranche I of its notes redeemable in shares (NRS) and all the disposal proceeds notes (DPN) issued on May 26, 2010 as part of its restructuring that was as a result of capital market operations earlier in 2010.

As part of the redemptions, the company was to issue 95.2 million new shares, with the redemption of the 313,890,656 of NRS I notes resulting in the issue of 45.2 million new shares.

Technicolor was to pay €265,053,696 to redeem the DPN notes, including interest.

Technicolor, formerly Thomson SA, is abased in Boulogne-Billancourt, France, and provides video technologies, systems, finished products and services to the media and entertainment industry.

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