Johnston Press looks at refinance deal
REGIONAL publisher Johnston Press is looking to refinance its huge debt burden next year after agreeing a deal with its lenders to reset its financial covenants.
The newspaper group, which owns the Yorkshire Post, Sheffield Star, Halifax Courier among its stable of titles across the UK, said that the financial covenants had been reset to the maturity of its debt facilities in September 2015.
That agreement gives it time to look to refinance in 2014.
Edinburgh-based Johnston Press said that it is making “significant progress” with the implementation of its operational strategy which is focused on growing the overall audience through the re-launch of its print titles and investing in new digital products across all platforms.
The group aims to return to top line growth by increasing digital revenue to mitigate the decline in print advertising.
Johnston saw like-for-like operating profit increase by 4.3% in the six months to June 2013, the first such increase in seven years, and by 7.8% in the 18 weeks to October 2013.
A further trading update will be provided in March 2014 along with the company’s full year results for 2013.
Commenting on the intended refinancing, Johnston Press CEO Ashley Highfield said: “I am pleased with the ongoing support shown by our lender group in providing a clear path for the continued pursuit of our operational strategy, which has shown very encouraging developments in 2013. We plan to refinance the group in 2014 and will continue to work closely with our lenders and their financial advisers for that process. A stable medium-term capital structure will support the acceleration of our digital growth strategy and would expedite the projected return to overall top line growth.”
