Johnston Press PLC Share News (JPR)

LONDON (Alliance News) - Johnston Press PLC Monday said it has successfully completed its capital refinancing plan to pay down its debt and stabilise its finances, and has received gross proceeds of GBP140 million in connection with its placing and right issue.

The publisher of regional newspapers including The Scotsman and The Yorkshire Post said in May that it was planning to raise about GBP2.3 million in a placing of 13.7 million shares at 17.0 pence each with British Sky Broadcasting PLC, about GBP137.7 million in a rights issue, and about GBP220 million by issuing senior secured fixed rate bonds that will mature in 2019.

At the time, it said it will also get a new GBP25 million revolving credit facility expected to mature in 2018, and modify funding arrangements and the schedule of contributions to its pension fund.

The publisher, which owns over 200 newspaper titles in total, has been struggling in recent years as advertisers have reduced their spending on adverts in traditional newspapers. While a phenomenon that has affected the industry as a whole, local newspapers have been among the worst affected by these cuts. Like peers, Johnston Press is moving to a more digital strategy, but needed to sort out its debt-burdened balance sheet.

Johnston Press said in a statement Monday that it has now received the GBP140 million in proceeds from the placing and rights issue, as well as gross proceeds of GBP220.5 million from the offer of senior secured notes due 2019.

Johnston Press shares were up 0.5% at 3.71 pence Monday afternoon.

By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty

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