Valassis sets talk for $590 million two-part eight-year note offering

By Paul A. Harris

St. Louis, Feb. 26 - Valassis Communications Inc. set price talk for its $590 million proceeds two-part offering of eight-year senior unsecured notes (B3/B-) on Monday, according to a market source.

The Livonia, Mich., marketing services company talked a tranche of fixed-rate notes at the 8 3/8% area.

Meanwhile the company talked a tranche of floating-rate notes at the Libor plus 325 basis points area.

Tranche sizes remain to be determined.

Pricing is expected on Tuesday afternoon.

Bear Stearns and Banc of America Securities LLC are joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds, in addition to an $820 million credit facility, will be used to fund the acquisition of ADVO Inc. for $33 per share in cash, or about $1.2 billion, including about $125 million existing ADVO debt.

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