MediaHouse ? the owners of the Bermuda Sun and Island Press ? has been given permission to buy back up to 20 percent of its eight percent preference shares.

MediaHouse, formerly Island Press (Holdings) Ltd., also announced yesterday that it has increased its borrowing by $600,000 to $7.1 million in the last year.

The company did not disclose how many preference shares were outstanding or what price it would offer to holders of the shares. The preference shares, which have a par value of $5, last traded in January for $4.

MediaHouse was also given permission by the Bermuda Stock Exchange to make a direct offer to holders of its Preference Shares who hold 99 such shares or less to repurchase those Preference Shares. Only those repurchases can take place off the Exchange.

MediaHouse also said it had increased the $6.5 million mortgage it obtained in December, 2004 by $600,000.

The mortgage, which is secured by the company's properties, was originally taken out to repay loans and overdrafts totalling $5.5 million which had been used to finance the expansion of its Caribbean phone book publishing business and to purchase the website www.bermuda.com.

In 2003, the company had debt of $1.7 million.

The company said it increased the mortgage by $600,000 in May, 2005 the mortgage was increased by $600,000.

MediaHouse chief financial officer Stephen Harrison was quoted as saying that the outlook for the Caribbean business and for Bermuda.com was positive.