Valassis Communications to sell $590 million junk bonds

By Paul A. Harris and Sara Rosenberg

St. Louis, Feb. 12 - Valassis Communications Inc. plans to sell $590 million of high-yield bonds in an offering to be led by Bear Stearns & Co. and Banc of America Securities LLC, according to a market source.

The company will also put in place an $820 million credit facility to be launched at a Tuesday bank meeting.

Proceeds will be used to fund the acquisition of ADVO Inc. for $33 per share in cash, or about $1.2 billion, including about $125 million in existing ADVO long-term debt, which Valassis expects to refinance.

Valassis is a Livonia, Mich., marketing services company. ADVO is a Windsor, Conn., direct mail media company.

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