Yellow Media lays out plan to cut debt
(Reuters) - Canada's Yellow Media Inc YLO.TO said it plans to more than halve its C$1.8 billion debt and revamp its board as the company struggles to move its telephone directory business away from print to an online model.
The company, with a market valuation of about C$19 million, will issue notes, warrants and cash as it aims to cut its debt load to C$850 million, part of which will be due in 2018 at the earliest.
The recapitalization plan includes an exchange of credit facilities and medium-term notes of C$1.8 billion of its debt, the company said in a statement.
The company said its annual interest expense will also be cut by about C$45 million following the recapitalization, which is expected to close by the end of September.
Yellow Media has also set up a search committee of up to five members to select a new board of directors.
Stikeman Elliott LLP and Russell Hill Advisory Services Inc are Yellow Media's legal advisers for the recapitalization.
Shares of the Montreal-based company were up 40 percent at 3.5 Canadian cents on Monday morning on the Toronto Stock Exchange.
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Supriya Kurane)
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