Johnston Press considering fundraising
REGIONAL publisher Johnston Press has confirmed it is considering a potential equity raising.
The newspaper group, which owns the Yorkshire Post, Sheffield Star, Halifax Courier among its stable of titles across the UK company, 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.”
Johnston’s shares have risen from 16p to more than 26p since the beginning of the year.
At 2.42pm on March 3, the company’s share price was -0.75p at 25.75p before closing at 26p.
