LONDON (Alliance News) - Johnston Press PLC said Friday it received acceptances for 92.25% of its rights issue, which was announced on May 9 as part of a restructuring plan to pay down its debt and stabilise its finances.
The publisher of regional newspapers including The Scotsman and The Yorkshire Post said received acceptances for 4.23 billion shares of a possible 4.59 billion shares, raising GBP126.9 million before expenese. The offer was 6.52 shares for each 1 already owned at 3 pence per share.
Shares in Johnston were trading down 3.9% at 3.97 pence Friday morning following the announcement of the under-subscription.
The company planned to raise GBP137.7 million in the rights issue, alongside raising GBP2.3 million in a placing with British Sky Broadcasting PLC, and GBP220 million by issuing senior secured fixed rate bonds that will mature in 2019. It also planned to get a new GBP25 million revolving credit facility expected to mature in 2018.
Johnston has been struggling against the declining traditional print advertising market, and as a result saw revenue decline in the first 17 weeks of 2014.
By raising the funds, the company is looking to secure a stable finance base to return to growth by shifting its business further towards digital advertising.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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