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Valassis Amends Senior Secured Credit Agreement

Friday, April 16, 2010

Press release from the issuing company

Livonia, Mich. - Valassis, one of the nation's leading media and marketing services companies, announced today that it has amended its senior secured credit agreement to, among other things, allow it to use up to $325 million to repurchase its outstanding 8-1/4% Senior Notes due 2015, through April 15, 2011. There can be no assurance that Valassis will repurchase any such Notes. This amendment also provides Valassis the flexibility to extend the maturity of the revolving line of credit portion of the senior secured credit facility beyond the current expiration date of March 2, 2012, and provides additional features with respect to any future convertible or exchangeable notes or debt securities. As part of the amendment, Valassis agreed to reduce the aggregate revolving credit commitments under the senior secured credit facility from $100 million to $50 million, and increase the applicable spread for the current LIBOR-based borrowings under the senior secured credit agreement by 50 basis points from 175 basis points to 225 basis points.

At Dec. 31, 2009, Valassis had an aggregate principal amount of $540 million of its 8-1/4% Senior Unsecured Notes outstanding and no borrowings under its revolving credit facility (other than outstanding letters of credit in the amount of approximately $9.5 million).

"This amendment allows us the opportunity to use cash currently on our balance sheet to continue to deleverage, reduce interest expense and enhance shareholder value," said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. "It also creates additional flexibility in terms of our future capital structure."

 

 

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