Independent News & Media has moved to refinance its New Zealand cumulative preference shares that mature at the end of November, writes Jane O'Sullivan Markets Correspondent.
Its New Zealand subsidiary wrote to shareholders last Friday to say it was planning a new issue of preference shares.
Each existing share of eight New Zealand dollars (€4) would be exchangeable for two new NZ$4 shares.
The new shares will offer investors the option to exchange their share at the end of November 2007 for one share in Independent News & Media or for NZ$4 in cash.
The new issue is expected to raise around €100 million, with provision to accept over-subscriptions of up to a further 25 million.
Analysts said the proceeds of the New Zealand issue would raise more than 70 per cent of the €175 million required to be refinanced by Independent News & Media as a result of two preference share issues that mature this year.
The company faces a repayment of €107 million in June, followed by a further €67 million in November.
Goodbody, one of the company's brokers, said yesterday that "this is the first in a number of steps, which we believe will lead to a change in sentiment towards the shares".
Independent has been working to address concerns about its high debt levels in recent months. In March, it announced a rights issue to raise €103 million, and it plans to sell its British regional newspaper for €88 million.
The media group is also aiming to raise a further €59 million through the sale of non-core assets.
