American Color Graphics to review strategic options after Vertis merger busts

By Angela McDaniels

Seattle, Oct. 4 - American Color Graphics, Inc.'s board of directors will work with Lehman Brothers to conduct a review of its strategic options, according to a company news release.

The strategic options could include:

• Holding an exchange offer for the company's 10% senior second-secured notes due 2010;

• Seeking waivers or amendments from the company's noteholders and bank lenders to incur additional debt;

• Refinancing the company's bank credit facilities; and

• Selling the entire company or disposing of material assets.

The announcement follows Vertis, Inc.'s termination on Monday of the proposed merger between the two companies.

The companies signed a letter of intent in July and then extended the deadline for signing a definitive merger agreement several times. On Monday, Vertis said it had "conveyed an offer" but received no response from American Color by the deadline of midnight on Sunday.

Vertis terminated the letter of intent, but said it is prepared to "entertain further discussions."

American Color Graphics is a full-service premedia and print company based in Brentwood, Tenn.

Baltimore-based Vertis provides print advertising and marketing solutions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.