Yell To Slash GBP3.8 Billion Debt Through Cash Call Plan

Fri, 25 Sep 2009

Yell Group, the publisher of Yellow Pages in the UK, has announced plans to reduce its large debt by selling more shares .

The directories group, which has been hit by a weak advertising market in the recession, said it plans to generate at least £500m in shareholder cash in a bid to slash the estimated £3.8 billion it owes to more than 300 lenders .

The company said it also plans to repay a further £300 million of its long-term debts over the next 18 months through a second equity raising or a bond issue.

Yell has been in talks with its banks over a refinancing package since June and recently confirmed it has received backing from a "significant proportion" of its lenders .

In a statement, Yell’s chief executive John Condron said: "We have made good and constructive progress in a consensual process comprehensively to refinance the group."

"It reflects the recognition of the robust and cash generative nature of Yell's business model, which continues to show resilience relative to other media despite the current economic challenges."

Mr Condron said the group "still has some way to go", but added that the proposals will help it get through the tough economic climate and ensure it is well-positioned for a recovery.

Yell added that its current trading was in line with expectations, with second-quarter and third-quarter revenues expected to be down by 17 per cent and 16 per cent respectively from last year’s figures.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.