Source: Sharecast
According to Sky News, the funding, which would be provided in two tranches with an initial £60m expected shortly, formed part of a broader £200m package that also includes asset sales and deferred interest payments.
The agreement followed ongoing discussions with bondholders over the company’s future structure, including a potential break-up involving the sale of its consumer business and PXC, its wholesale and network arm.
However, the disposals were not expected to take place in the near term.
In addition to the Ares funding, Sky said TalkTalk had already raised £50m through the sale of non-core customers to Utility Warehouse earlier this year.
The company had also reached an in-principle agreement to defer and capitalise cash interest payments worth around £60m.
TalkTalk, which has over three million broadband customers, had been struggling with a stretched balance sheet despite completing a £1.2bn refinancing in 2024.
It had appointed advisers from Alvarez & Marsal to strengthen its financial operations.
Bondholders had been pressing the company to secure additional funding amid growing operational challenges.
The company had also been involved in a dispute with BT Group’s infrastructure division, Openreach, which the Financial Times reported last month could prevent TalkTalk from adding new customers due to outstanding payments.
Neither TalkTalk nor Ares had publicly commented on the reports by Friday lunchtime.
Reporting by Josh White for Sharecast.com.