By Paul A. Harris
St. Louis, Feb. 27 - Valassis Communications Inc. priced a downsized and restructured $540 million issue of eight-year senior notes (B3/B-) at par to yield 8¼% on Tuesday, according to an informed source.
The yield came on the tight end of the 8 3/8% area price talk.
Bear Stearns and Banc of America Securities LLC were joint bookrunners for the Rule 144A and Regulation S with registration rights deal.
The issue was downsized from $590 million with the company shifting $50 million of funding to its term loan. A proposed floating-rate note tranche was dropped from the transaction.
Proceeds will be used to help fund the acquisition of ADVO Inc. for $33 per share in cash, or about $1.2 billion, including about $125 million existing ADVO debt.
Valassis is a Livonia, Mich., marketing services company.
| Issuer: | Valassis Communications, Inc.
|
| Amount: | $540 million (decreased from $590 million)
|
| Maturity: | March 1, 2015
|
| Security description: | Senior notes
|
| Bookrunners: | Bear Stearns & Co., Banc of America Securities LLC
|
| Coupon: | 8¼%
|
| Price: | Par
|
| Yield: | 8¼%
|
| Spread: | 369 basis points
|
| Call protection: | Four years
|
| Trade date: | Feb. 27
|
| Settlement date: | March 2
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 8 3/8% area
|
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