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Yell today announced a £660 million fundraiser via a placing and open offer, as the Yellow Pages publisher looks to cut its £3.8 billion debt pile.
The deal was tied into Yell's lenders agreement on a refinancing package last week, extending the maturity of its loans to 2014. It had committed to raising at least £500 million from a cash call.
The refinancing would “immediately reduce debt and support strategic and operational focus”, according to chief executive John Condron.
But Yell also posted half-year results today which saw revenue fall to £982.8 million, down 13.2% when stripping out currency movements.
Condron said the results reflected the effects of the recession and a “reduction in confidence among businesses”.
Internet revenue rose almost a fifth, however.
Reader views (1)
This is £660 million just to keep going without the additional £25 million extra interest per year which the original £660 KKK will cost them. The problem is that Google has taken over, sorry Yellow Pages you will go the way that coal merchants did when we all went on Gas Central Heating, or all the shops of "Radio Rentals" when TV came in, you have had 40+ good years, you provided a useful service, you should have adapted into a search engine at the outset of the Internet, but its easy to be wise after the event.Your borrowing requirement in a shrinking market is too much.
- Ann Other View, England
