Regional publisher Johnston Press has declared its £360m capital refinancing plan a success after raising £140m from the sale of shares and a further £220m from bonds.
The plans unveiled last month were designed to enable the publisher to reduce its £300m debt by a third to less than £200m.
A company statement issued last night read: “Johnston Press plc is pleased to announce the successful completion of its Capital Refinancing Plan announced on 9 May 2014.
“Gross proceeds of £140.0 million have now been received by the Company in connection with the Placing and the Rights Issue, and further to the announcement made by the Company on 14 May 2014, gross proceeds of £220.5 million from the offering of £225.0 million 8.625pc senior secured notes due 2019 at an issue price of 98pc have now been released to the Group from escrow.
“All amounts outstanding under the Existing Lending Facilities have been prepaid and cancelled in full, the Private Placement Notes have been redeemed in full, and the New Revolving Credit Facility has become available.”
Speaking last month after JP shareholders approved the refinancing package, chief executive Ashley Highfield described it as great news.
He said: “The refinancing means we are no longer subject to quarterly tests by the banks. Our new arrangements represent a considerable achievement, and the process has revealed a significant and encouraging level of external confidence in our business, and our ability to grow.”
The board must be mightily relieved that they are no longer subject to quarterly tests. I imagine the ad spend has gone downhill since England has failed in the World Cup, failed against Sri Lanka, and once Le Tour in Yorkshire is over, then what? At one time such events would have inspired creative advertising for their clients, but I no longer see evidence of this. The quality of the journalism is now being questioned: letters being published in The Yorkshire Post picking up on grammatical errors. JP must get the core products right. Digital is the future when run alongside print. Check out “the LATEST from Ashley Highfield” on twitter. Twelve days ago is not very ‘digital first’.
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Anyone asked how many shares Local World and its proxys bought in the rights issue? #justsaying
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You couldn’t make it up. Some JP papers that hiked prices and lost thousands of readers are offering readers price discount coupons to get money off paper. Stable door management at its finest.
Memo: when they are gone, they are gone.
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