Yell completes refinancing

By Georgina Prodhan

LONDON (Reuters) - Struggling yellow-pages publisher Yell Group Plc (YELL.L) set out the last stage of a protracted refinancing on Tuesday with a larger-than-expected fully underwritten share issue, lifting its shares 10 percent.

Taking advantage of renewed market appetite for equity, Yell said it would sell 660 million pounds worth of stock, raising a net 574 million after expenses to pay down some of its 4 billion pound debt pile, more than the 500 million it had promised.

Yell joins a growing list of companies such as transport group National Express Plc (NEX.L) and electronics group Laird Plc (LRD.L) which have said in recent weeks they are issuing equity to cut their debts.

"This is basically taking debt off the agenda," Yell Chief Financial Officer John Davis told Reuters in a telephone interview.

Yell shares, which have recovered from lows around 21p seen earlier this year, traded up 10 percent at 49-1/2 pence by 8:16 a.m., off a high of 52-1/4p and outperforming a flat DJ Stoxx European media index .SXMP.

The share issue comes after Yell recently agreed a refinancing of its debt that was conditional on its raising at least 500 million pounds by selling new stock. The total fees of 86 million pounds include both debt and equity aspects of the deal.

It plans to issue 1.6 billion shares at 42 pence apiece, a 12.5 percent discount to Monday's closing price. Half will be sold through a placing to agreed buyers and half will be sold through an open offer.

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