Vertis Cancels Debt Exchange Offer
February 9, 2010
Vertis has canceled an exchange offer that would have given equity to holders of its 13.5% senior PIK notes due 2014, the company said Monday afternoon. Vertis may seek another exchange offer or a refinancing.
The Baltimore-based market communications company needed 97% of bondholders to agree to the exchange but did not have the required support by the offer's expiration Feb. 5. The company had offered about 840 shares of its common stock for every $1,000 tendered.
In a statement, Vertis said it may pursue more exchange offers, tender offers, consent solicitations or other transactions in order to reduce its debt. A company representative was not immediately available for further comment.
Vertis merged with American Color Graphics in the summer of 2008 as part of a bankruptcy agreement that was also a merger agreement between both companies (LFN, July 21, 2008).
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