TalkTalk has this week finalized a £400 million ($526m) refinancing agreement with lenders.

First announced last month, the deal will enable TalkTalk to alleviate fears it would default on payments and extend its debt maturities to 2027.

The broadband provider, which has had its struggles, was originally due to pay its Revolving Credit Facilities in November 2024, while Senior Secured Notes were set to mature in February 2025. Both have been pushed back until September 2027 as part of the agreement.

TalkTalk shareholders including founder Sir Charles Dunstone, Toscafund, and Ares Management, have pledged to inject a further £170m ($223m), on top of the £65m provided last month.

In a statement this week, TalkTalk said the transaction leaves the company "well-funded to deliver the respective strategic plans of PlatformX Communications (PXC) and TalkTalk."

Other terms agreed, include the contribution of other assets into the company by shareholders, including the Virtual1 business, plus the OVO and Shell branded customer bases.

TalkTalk, Britain's fourth-biggest broadband operator with 3.8 million customers, currently has a debt pile of £1bn ($1.27bn) and has been looking to sell off some of its assets to clear the debt.

In September, TalkTalk outlined plans to split into three standalone companies, its B2B Wholesale Platform, TalkTalk Consumer, and TalkTalk Business Direct.

Last month, Australian investment firm Macquarie walked away from talks to buy a stake in TalkTalk's wholesale division, PlatformX Communications (PXC).

Macquarie's interest in the company's wholesale division dates back to earlier this year, when it was reported that it had opened talks to buy the unit.

At the same time, UK mobile carrier Virgin Media O2 was heavily linked with a takeover of TalkTalk's consumer unit.