New Issue: Vertis $100 million add-on to notes due 2009 yields 10 7/8%

By Paul A. Harris

St. Louis, Nov. 25 - Vertis Inc. priced a $100 million add-on to its 10 7/8% senior notes due June 15, 2009 (B2/B-) at par on Monday to yield 10 7/8%.

Deutsche Bank Securities Inc. and JP Morgan were the bookrunners on the rapidly-marketed transaction. Banc of America Securities and Fleet Securities were co-managers.

The original $250 million Rule 144A deal priced on June 17, 2002. Proceeds were slated to repay bank debt.

The issuer is a Baltimore-based provider of integrated marketing services.

Issuer: Vertis Inc.

Amount: $100 million

Type of securities:	Add-on to senior notes
Managers:	Deutsche Bank Securities, JP Morgan (joint books)
Co-managers:	Banc of America Securities, Fleet Securities
Maturity:	June 15, 2009
Coupon:	10 7/8%, first payment Dec. 15, 2002
Price:	Par
Yield:	10 7/8%
Spread:	753 basis points
Call features:	Callable on June 15, 2006 at 105.4375, then at 102.7188, declining to par on June 15, 2008 and thereafter
Equity clawback:	Until June 15, 2005 at 110.875 for up to 35%
Change of control:	101% of face
Ratings:	Moody's: B2
	Standard & Poor's: B-
Settlement Date:	Nov. 29, 2002 (T + 3) with accrued interest
Rule 144A CUSIP:	925335AE1
Distribution:	Rule 144A, Regulation S

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