Story image

TeamTalk finalises new 3-year banking facility

29 Jun 17

TeamTalk announced that it has signed its new banking facility with Westpac New Zealand.

The new facility for the company runs through and until March 31, 2020 to replace the existing facility which expires at the end of August 2017.

In line with the company’s strategy, the recently completed Farmside transaction with Vodafone has enabled the company to pay down debt and enable TeamTalk to reduce its financing requirements.

The new facility will be for $27 million on broadly the same terms and conditions including an agreed repayment schedule, that will allow sufficient headroom and flexibility to execute its capital plan.

Andrew Miller, TeamTalk chief executive says, “We announced in February that we had agreed the essential terms of our new facility but the Farmside transaction has enabled us to reduce our requirements and make savings in both fees and financing costs.

“We have been very clear about our strategy to reduce debt and have therefore put in place a plan to further reduce our facility in steps and thus make further savings in our finance costs.”

The new facility provides further evidence of the company delivering on its business plan.

Earlier this month, TeamTalk announced the completion of the transaction enabling Vodafone NZ to acquire 70% of the shares in BayCity Communications (which, together with its subsidiaries is referred to as the Farmside Group) for $10 million in cash.

TeamTalk is able to sell its remaining 30% to Vodafone NZ for $3 million at any time over the next three years by way of a put option – Vodafone NZ will also hold a call option to enable them to acquire the remaining 30% of the shares in Farmside for the same price in certain circumstances.

Despite the acquisition, the companies assert it will be business as usual with TeamTalk continuing to manage Farmside under a management contract, while the transaction will build on the relationship between the two and open the door for synergies beyond Farmside.

Spark New Zealand had earlier attempted to acquire TeamTalk for 100% of its ordinary shares at 80 cents per share.

Proofpoint launches feature to identify most targeted users
“One of the largest security industry misconceptions is that most cyberattacks target top executives and management.”
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
McAfee named Leader in Magic Quadrant an eighth time
The company has been once again named as a Leader in the Gartner Magic Quadrant for Security Information and Event Management.
Symantec and Fortinet partner for integration
The partnership will deliver essential security controls across endpoint, network, and cloud environments.
Review: Blue Mic’s Satellite headphones are good but...
Blue Mic’s newest wireless headphones deliver on sound, aesthetic, and comfort - but there is a more insidious issue at hand.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Forcepoint and Chillisoft - “a powerful combination”
Following Chillisoft’s portfolio expansion by signing on Forcepoint, the companies’ execs explain how this is a match made in cybersecurity heaven.
David Hickling in memoriam: “Celebrate the life and the music it made”
Dave was a well-respected presence in the IT channel and his recent death was felt by all the many people who knew him as a colleague and a friend.