Johnton Press might be planning to raise at least £75 million through a new rights issue in the UK as it plans to refinance its debt.
The Edinburgh-based publisher has said that it is looking to raise funds to refinances its £300 million of debt. Johnston confirmed that it was considering options including a potential equity raising in the market to raise funds to manage tis debt level. The company is planning to boost its finances in order to strengthen its balance sheet.
The publishing giant, has around 200 titles in the UK and Ireland including The Scotsman and Yorkshire Post. It is struggling with the high level of debt from £300 million built up by acquisitions. The company's efforts including cost-cutting and redundancies have reduced the total level of debt from its high of £361.7 million in June 2012.
The company believes that a smaller debt level and sale of its 14 Irish newspapers will allow the company to boost its profile in the markets and manage its loan repayments in a better manner.
The company has not offered any comments on the matter.
Source: Top News