Yelling for more

10 November 2009 By Nicholas Paisner

The heavilyindebted directories business has managed to get underwriting for an equity issue almost twice the size of its market capitalisation. The UK firm has also avoided a rights issue while limiting the fall in its share price to around 4%.

This content is for Subscribers only

Context News

Yell completed a £660m equity offering on November 10. The company's market capitalisation on November 9 was approximately £375m.

The underwritten transaction consisted of a firm placing and a placing and open offer. Each raised £330m. In the past year, a number of UK corporates, including Wolseley and UK Coal, have conducted firm placings alongside either a rights issue or a placing and open offer.

Yell announced that its lenders had agreed to a debt restructuring on November 2. That agreement was conditional upon completion of an equity issue of at least £500m. By raising £660m rather than the minimum of £500m, Yell will reduce its interest costs by 0.25%. Transaction proceeds will to be used to repay debt.

Email a friend

Please complete the form below.

Required fields *