Vericast cancels bonds, term loan amend-and-extend transactions

Vericast Corp. has pulled a bond and loan transaction shopped in connection with the partial refinancing of its capital structure, according to market sources.

The bond component of the deal, originally planned as $2 billion in total, was trimmed earlier this week. The five-year first-lien secured notes (B-/B3) were downsized to $1.1 billion, from $1.3 billion, and the six-year second-lien secured notes (CCC-/Caa3) decreased to $675 million, from $700 million. Guidance circulated in the 9.5% area for the five-year paper and in the 12.5% area for the six-year notes.

The issuer has also canceled plans to complete an amend-and-extend of its term loan B, sources said. The transaction sought to extend the maturity from November 2023 to three months inside the maturity of its first-lien notes. Extending term loan holders were to receive a $689 million pay-down, with a 90% minimum acceptance rate, leaving $775 million outstanding. For reference, Vericast's covenant-lite TLB dates to a 2017 refinancing and pricing is L+475, with a 1% Libor floor.

Vericast Corp. operates as a marketing company, offering advertising, marketing, transaction solutions, customer data, cross-channel campaign management and intelligent media delivery services. The company is a wholly owned subsidiary of MacAndrews & Forbes Worldwide Corp., which is an indirect wholly owned subsidiary of MacAndrews & Forbes Inc.