Shares in Yellow Pages publisher Yell Group roared higher on Monday morning after its lenders agreed on amendments to financing.
Yell had been in talks with its lenders since November to increase the headroom under its net debt-to-EBITDA (earnings before interest, tax, depreciation and amortisation) covenant, as well as other debt-related and administrative amendments.
The net debt-to-EBITDA ratio shows how long it would take for a company to pay-off its debt, assuming both net debt and EBITDA do not change.
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The proposals have now been approved by an "overwhelming majority of lenders", the statement said.
"We are pleased that, with this decision, lenders have strongly endorsed our new strategy and have given the group additional freedom to carry out its transformation programme," said Chief Financial Officer Tony Bates.
By 08:38, shares had jumped 17.34% to 6.7p.
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