Solocal Bonds Tumble After Earnings Slump at Directory Publisher

Solocal Group’s bonds fell to a nine-month low after the French directories publisher, which restructured 1.6 billion euros ($2 billion) of debt in June, said operating income tumbled 57 percent in the third quarter.

The 8.875 percent notes declined 6 cents on the euro to 88 cents, according to data compiled by Bloomberg. The bonds are the worst performers in Bank of America Merrill Lynch’s Euro High Yield index today.

Europe’s biggest directories companies are reducing or restructuring their debt as they manage high borrowing levels and a decline in their traditional print businesses. U.K. yellow pages publisher Hibu Plc was taken over by its creditors this year while Italy’s Seat Pagine Gialle SpA got court approval to restructure about 1.5 billion euros of debt.

Solocal, formerly known as PagesJaunes, said its third-quarter operating income dropped to 42.4 million euros from 97.7 million euros in the same period a year earlier. Net income fell 71 percent to 10.4 million euros, according to a statement from the Paris-based company.

As part of its restructuring, the company increased capital by 440 million euros to reduce its debt pile. Creditors also agreed to extend the maturities of its term loans from September 2015 to March 2018.

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