Belfast-based media group Ulster Television, owner of TalkSport, is aiming to raise almost £50m in a stock market rights issue ahead of "potentially worsening" credit market conditions.

UTV, which runs the ITV franchise in Northern Ireland, is proposing to raise £49.9m in order to "reduce the group's gearing, strengthen the balance sheet".

The company, which also owns more than 20 radio stations in the UK and Ireland, added that the funds would "enable the continuation of its strategy of developing a diversified multimedia business". UTV also said it has put in place new five-year finance facilities.

The company in a statement: "While the board had originally intended to commence the refinancing of its existing debt facilities during summer 2008, it has now decided to accelerate the refinancing process given the prevailing and potentially worsening financial market conditions."

Expenses relating to the rights issue are expected to be £3.2m, resulting in net proceeds of £46.7m.

"I am pleased that we are able to maintain our cautiously optimistic outlook for this year and have completed the refinancing of the group in the context of very challenging credit markets," said John McCann, the chief executive of UTV.

"We believe it is important to put in place a balance sheet structure and refinancing package of debt and equity that is both robust and cost effective."

The rights issue, planned for June 17, is subject to shareholder approval.

Last month, UTV reported a like-for-like group revenue rise of 4% for the four months to April 30, fuelled by a strong performance from radio station TalkSport.

However, the 19% year-on-year revenue growth at TalkSport in the first four months of 2008 was offset by a 3% decline at UTV's ITV television business during the period.

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