Member Article

Yorkshire Post publisher Johnston Press completes £360 million refinancing plan

The Yorkshire Post publisher Johnston Press media group has successfully completed a £360 million capital refinancing plan.

According to the Yorkshire Post, the group raised £140 million from a rights issue and a further £220 million from a new fixed rate bond.

The Johnston Press media company, which owns 250 newspapers and almost 200 local news and e-commerce websites , announced its intention to refinance in May as part of plans to fund future business growth.

Broadcaster Sky entered into a strategic regional partnership with Johnston Press, agreeing to a £5 million investment.

Sky has made available its new product, Sky AdSmart Local, to part of Johnston Press’ sales network with a view to rolling it out further at a later date.

The new finance package has allowed the company to pay off its £300 million bank debt and operate with a new, reduced debt of £225 million.

The company expected the share price to fall to around 4.8p following the rights issue and it is currently trading at a little below this.

Ashley Highfield, chief executive, said: “Our new financial arrangements represent a considerable achievement and demonstrate a high level of confidence externally in our strategy and our future growth.

“We are in a more stable position and I am confident the share price will move upwards.”

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