Perelman’s Vericast Sells Junk Bond to Rework Debt Load (1)

Ronald Perelman’s Vericast Corp. sold a $540 million junk bond as part of a wider reworking of its debt that would ultimately give the company more breathing space.

Vericast, which has businesses focused on marketing, coupons and checks, priced the offering at a coupon of 11% on the five-year first-lien secured bonds, according to people with knowledge of the matter. The size increased from the initial $465 million amount.

A group of lenders -- including hedge fund Chatham Asset Management -- agreed to purchase the full amount of the deal before it was officially announced earlier Monday, said a ...