Yell shells out for breathing space on debt - Business - Evening Standard
       

Yell shells out for breathing space on debt

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07 October 2008

Yellow Pages publisher Yell today secured a new borrowing deal with its banks — but at a hefty price reflecting the squeeze in credit markets.

The group, which has £3.7 billion of borrowings, will pay a one-off arrangement fee to lenders headed by HSBC and its annual interest bill will rise by some £37 million to £296 million a year.

Yell said the deal, which had to be approved by two-thirds of the lenders, gave it an extra 20% headroom on its covenants. The group halted dividend payments last month, which should save
£140 million a year. Its shares have tumbled almost 80% this year.

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