O’Reillys to gain from any deal at INM

IT is strongly believed that any refinancing deal achieved by Independent News & Media (INM), regarding its unpaid €200m bond, will end up with the O’Reilly family effectively retaining control over the publishing group.

INM’s share price shot up by just under 10% (2c) to 29c yesterday on speculation that the group’s board, led by chief executive Gavin O’Reilly, was getting closer to a deal with bondholders, after six months of unsuccessful bargaining. It seems that the refinancing deal will involve between €100m and €120m of the outstanding debt being swapped for around a 45% stake in the company

In addition, a rights issue could result in raising a further €100m to pay off the outstanding balance of the bond, which was originally due for repayment back in May. Yesterday’s share price movement followed a near 15% fall on Monday after speculation that a like-minded deal was pending.