Vericast brings $465 million new five-year first-lien notes as part of debt refinancing effort

By Paul A. Harris

Portland, Ore., Aug. 9 – Vericast Corp. plans to sell $465 million of new five-year first-lien notes (Caa1), according to a syndicate source.

The new notes come in addition to a $733 million tranche of first-lien notes due 2026 that was issued in a debt exchange involving first-lien notes set to mature in 2022 and 2024.

The new notes offering was set to kick off on a Monday conference call with investors.

Credit Suisse Securities (USA) LLC is the left bookrunner. Jefferies LLC, BofA Securities Inc., Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc., Deutsche Bank Securities Inc. and KeyBanc Capital Markets Inc. are the joint bookrunners.

The new Rule 144A and Regulation S first-lien notes will become callable after two years at par plus 50% of the coupon. They feature a two-year 40% equity clawback and a 101% poison put.

The initial issuer will be Vericast Merger Sub, Inc., which is to be merged with an into Vericast Corp.

The San Antonio-based marketing services company plans to use the proceeds to voluntarily prepay a portion of its amended and extended term loans and borrowings under its ABL facility, as well as to redeem its old notes due 2022, to the extent any are outstanding after the exchange offers.

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