Member Article

Yorkshire Post owners announce £360 million refinancing plan

Johnston Press plc, owners of regional papers including The Yorkshire Post and the Scotsman, has announced a £360 million capital refinancing plan.

The plan will allow the raising of a £25 million revolving credit facility, expected to mature in 2018, raising proceeds through the placing of shares, and issuing of fixed rate bonds (expected to mature in 2019)

Johnston has seen its business suffer from the impact of catastrophic advertising revenue declines.

Johnston reacted by shutting down underperforming titles, and subsequently underlying operating profit went up 2.5% in the year to December 28.

Ashley Highfield, Chief Executive Officer, stated: “Johnston Press has already achieved much in turning around our business performance, with 2013 marking a return to underlying operating profit growth for the first time in seven years.

“The refinancing of the business is another key milestone for the Company and I am delighted to be announcing this Capital Refinancing Plan.

“The Capital Refinancing Plan will also facilitate, and allow the Group to continue to focus its efforts on the ongoing implementation of the Future Strategy.

“The Board considers that the successful implementation of the Future Strategy, in combination with the implementation of the Capital Refinancing Plan, will provide a platform from which the Group can return to overall revenue growth and generate increased surplus cash flow with a view to further deleveraging the Group and re-investing some of that surplus cash to grow its digital presence further.”

This was posted in Bdaily's Members' News section by Clare Burnett .