July 16, 2012 / 6:38 AM / 5 years ago

Pagesjaunes to use cash to pay debt starting in 2013

PARIS, July 16 (Reuters) - Pagesjaunes said a portion of its cash flow starting next year would go to repay its bank debt maturing in September 2015, after its private-equity owners announced on Saturday that they were in restructuring talks with their lenders.

Mediannuaire, a holding company controlled by Goldman Sachs and KKR that bought 54.7 percent of Pagesjaunes in a leveraged buyout in 2006, is in talks to renegotiate its debt, according to a Pagesjaunes statement on Monday.

“Following such restructuring, Mediannuaire Holding should own circa 20 percent of the share capital of Pagesjaunes,” said the statement.

Pagesjaunes added that it believed that negotiations between Mediannuaire Holding and its creditors “should be beneficial to and therefore in the interest” of Pagesjaunes.

Pagesjaunes added it was still in talks with its own lenders.

In February, Pagesjaunes decided to scrap its dividend to conserve cash after its revenue fell in 2011.

Famous for its printed directories, Pages Jaunes has shifted its strategy towards the Internet in recent years after it struggled with a decline in its core business, high levels of debt and deserting investors.

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