Business News
Vertis Holdings Completes Recapitalization; Well Positioned for Long-Term Growth
Tuesday 21. December 2010 - Closes $600 Million in Financing from Morgan Stanley Senior Funding and GE Capital, Restructuring Finance
Completes $100 Million Equity Injection
Vertis Holdings, Inc. (“Vertis”) today announced that, having closed its previously announced financing arrangements, it has consummated its voluntary, pre-packaged Chapter 11 reorganization. Effective today, the Company emerges substantially delevered and with a capital structure that provides the financial flexibility to further invest for the long-term growth of its business.
“The successful completion of our recapitalization marks a new beginning for our Company,” said Gerald Sokol Jr., interim chief executive officer and chief financial officer. “We are now empowered with the financial strength necessary to advance our technology, optimize our infrastructure, and create new products and services. We will accomplish this through the development of key services and products internally and through strategic acquisitions that meet our clients’ evolving marketing needs. I am tremendously grateful to all of our lenders and shareholders, and especially to our lead shareholders Avenue Capital and Alden Global Capital, for their support during this process and also thank all of our employees, clients, suppliers and other business partners for their continued confidence in Vertis. I look forward to the future we are building together.”
Completing its in-court recapitalization in just 32 days, Vertis has successfully reduced its debt by approximately 60 percent, or more than $700 million, while substantially lowering interest costs, extending maturities and increasing liquidity. As part of this process, the Company secured a $425 million Term Loan from Morgan Stanley Senior Funding, Inc. and a $175 million Revolving Credit Facility from GE Capital, Restructuring Finance. Vertis also received $100 million from the sale of new common equity.
Perella Weinberg Partners and FTI Consulting, Inc. serve as the Company’s financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP is the Company’s legal counsel.