UPDATE 3-R.H. Donnelley posts Q1 loss on charge; to lower debt

(Adds conference call details, comments, updates share movement)

By Savio D'Souza

BANGALORE, May 8 (Reuters) - Yellow pages directories publisher R.H. Donnelley Corp (RHD.N: Quote, Profile, Research) posted a quarterly loss hurt by a $2.5 billion goodwill charge, and unveiled plans to reduce debt, sending its shares up as much as 34 percent.

The company, which had earlier this year scrapped plans to pay a dividend to conserve cash, has a balance sheet loaded with about $10 billion in debt as of March 31, weighing on both its debt and equity ratings.

R.H. Donnelley said it would refinance the Dex West credit facility and amend the R.H. Donnelley Inc credit agreement for additional covenant flexibility and extend the maturity date of the revolving credit facility.

On Wednesday, Deutsche Bank had upgraded the company to "hold" from "sell" on the possibility of a near-term refinancing and a follow-up equity offering.

"These events (a refinancing or an offering), separate or combined, would reduce the risk profile of RHD and put a floor on the stock," said analyst Paul Ginocchio, who also doubled his price target to $6.

The company's shares have slumped 92 percent so far this year, before today's gains, as investors were concerned about the resilience of a business model based on printed directories amid the surge in online-related search.

R.H. Donnelley's slump in fortune has mirrored that of its U.S.-based rival Idearc Inc (IAR.N: Quote, Profile, Research) and peers like British-based Yell Group (YELL.L: Quote, Profile, Research) and Italian Seat Pagine Gialle SpA (PGIT.MI: Quote, Profile, Research).