In a move to alleviate pressure from existing debts, UK connectivity provider TalkTalk has secured a £75 million non-recourse financing facility from global investment firm KKR. The agreement was announced today, Monday, and the funds are being provided by accounts managed by KKR's credit business.
The new financing facility replaces a prior £75 million (£1 = $1.2527) facility which was due to mature this month. It is collateralized by certain accounts receivables originated by TalkTalk and its subsidiaries. This arrangement will provide TalkTalk with additional liquidity for a term of approximately three years.
The deal comes as TalkTalk grapples with financial pressures, which have led the company to sell off parts of its business. The new funding support from KKR is expected to bolster the company's growth and enable it to continue providing value-for-money connectivity services in the UK.
"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," said Giacomo Picco, a Managing Director at KKR.
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