Valassis Communications took a shine to ABN Amro subsidiary Standard Federal Bank's service-oriented style, illustrated through the bank's employee-based service offerings. This landed Standard Federal the sole lead on the company's new $125 million revolver, said Robert Recchia, executive v.p. and cfo of Valassis. "[Standard Federal] did a nice job over the past 12 months and wanted to do more," he stated, explaining that Standard Federal had implemented a bank-at-work program for the company, along with an on-site ATM machine at the Livonia, Mich., headquarters.
The four-year, unsecured facility replaces a three-year revolver led by Comerica Bank, which expired last October. Recchia said the previous line initially amounted to around $235 million, but was later reduced to $125 million because Valassis did not need the extra capacity. The new credit has not been tapped and is in place for general corporate purposes. The company does not foresee any immediate need to access the line, Recchia noted.
The marketing services and newspaper insert producer found the credit's pricing attractive, Recchia stated. Pricing was set at LIBOR plus 5/8 %, with some standard financial covenants. Comerica also signed onto the new credit as documentation agent, along with Harris Trust and Savings Bank, a subsidiary of Bank of Montreal, and Fifth Third Bank.