Newspaper group Johnston Press mulls rights issue

REGIONAL publisher Johnston Press has confirmed it is considering a potential equity raising.

The newspaper group, which owns the Lancashire Evening Post, Lancaster Guardian, Blackpool Gazette and well-known titles in Yorkshire, said it noted the recent media speculation relating to a potential equity fundraising and confirmed it intends to pursue a refinancing of its debt facilities this year.

Recent reports have suggested that the group is looking to raise around £75m in a rights issue, with the intention of issuing new shares to investors at a discount as part of a debt refinancing package expected as soon as April.

If it goes ahead, the rights issue would be Johnston Press’s second in six years, after going to shareholders for £170m in 2008.

The group said in a statement: “The board of Johnston Press notes the recent media speculation relating to a potential equity fundraising.

“As set out in the company’s announcement made on December 27, 2013, the company intends to pursue a refinancing of its debt facilities in 2014.

“The board confirms that as part of a proposed refinancing of its debt facilities it is considering a range of options including a potential equity raising. The quantum of any equity fundraising has not yet been determined. There can be no certainty that a refinancing of its debt facilities will be concluded in 2014, nor that an equity fundraising will proceed.”