Moody's may upgrade Valassis

Moody's Investors Service said it placed Valassis Communications, Inc.'s corporate family rating of B1, probability of default rating of B1, senior secured bank credit facility of Ba2, senior secured convertibles/exchange bond/debenture of Ba2 and senior unsecured regular bond/debenture of B3 on review for possible upgrade.

The review follows news that the company reached a settlement of its outstanding lawsuits with News America Marketing, a division of News Corp. whereby it will pay Valassis $500 million in cash and enter into a 10-year agreement to distribute free standing inserts through Valassis' share mail platform.

Moody's said it will evaluate the company's intended use of the after-tax settlement proceeds, the benefits of the shared mail distribution agreement and the outlook for Valassis' operations in a stabilizing economic environment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.