Yell asks for loan flexibility

Yellow pages publisher Yell Group has launched a loan amendment process aimed at reducing and refinancing its £2.6bn debt as it does not expect to grow by 2015. Yell asked lenders to relax its loan terms to provide it with the flexibility to explore ways to reduce its long-term borrowings. It intends to buy back loans using £108m of its cash at a discount and cancel them reduce leverage. It plans to eventually refinance its loans with non-bank funding, such as high-yield bonds.