Johnston Press reveals 360m pounds refinancing and 650 job cuts

Shares in Johnston Press lost a quarter of their value on Friday after the British regional newspaper publisher unveiled a 360m pounds capital refinancing to slash its 311m pounds debt pile and 650 job losses.The stock fell 6p to 18p as Johnston said it planned to raise the cash in a share placing, rights and bond issues and a new £25m loan.Johnston, which has 196 paid-for weekly newspapers and 198 local news and e-commerce websites as well as daily and free newspapers, said the move would help it cut its debt to about £197m and extend its financing arrangements to 2018 and beyond.Debt has risen to £311m from £302m at the end of last year as the group has embarked on a fourth quarter cost-cutting drive, including about 650 job losses, adding about £11m in restructuring costs.In a separate trading update, Johnston reported higher digital revenues and a slowing decline in print advertising revenue in the 17 weeks to April 26th.Newspaper circulation revenue continued to fall broadly in line with 2013 and adjusted group revenue fell year-on-year in mid-single digits, although it improved against 2013.The group also said it had done a deal with BSkyB under which Johnston would market its Sky AdSmart product to companies wanting TV advertising in specific local markets as well as in newspapers and online.Chief Executive Ashley Highfield said: "Although the economic outlook is not without challenges, the group continues to see momentum in the business, underpinned by re-structuring and re-focusing and an increasingly stable advertising market."PW