(Adds details, CEO quote, share price)
May 9 (Reuters) - Johnston Press Plc, publisher of"The Scotsman" and "The Yorkshire Post", unveiled a 360 millionpound ($610 million) capital refinancing plan designed toreverse a long-term decline in revenue.
The company said it plans to invest surplus cash in itsdigital business, where revenue is growing, in sharp contrast tothe falling circulation of its newspapers and a decline in printadvertising revenue.
As part of its refinancing, Johnston Press plans to raise2.3 million pounds by placing 13.68 million shares at 17 pence apiece - a discount of 29 percent to the stock's Thursday close.
Shares in the company fell 25 percent to 17.53 pence inearly trading, making it the top percentage loser on the LondonStock Exchange on Friday morning.
Edinburgh-based Johnston Press said on Friday that adjustedgroup revenues declined in the mid-single digits in percentageterms in the 17 weeks to April 26, hurt by lower circulation andprint advertising revenue.
But the company said that the rate of decline had slowed inprint advertising. Digital revenue rose during the sameperiod.
Johnston Press, which agreed last month to sell itsoperations in Ireland, returned to growth in underlyingoperating profit in 2013 for the first time in seven years.
Chief Executive Ashley Highfield said in a statement thatthe refinancing plan "will provide a platform from which thegroup can return to overall revenue growth and generateincreased surplus cash flow".
Johnston Press said the plan would also involve a rightsissue to raise 137.7 million pounds, the issue of new bonds toraise 220.0 million pounds and a 25 million pound revolvingcredit facility.
Panmure Gordon and JP Morgan Cazenove are the jointbookrunners and underwriters of the refinancing plan. Rothschildis the financial adviser.
On Friday, Johnston Press also announced an advertisingpartnership with British Sky Broadcasting Group. ($1 = 0.5899 British Pounds) (Reporting by Roshni Menon and Noor Zainab Hussain inBangalore; Editing by Robin Paxton)
