R.R. Donnelley tenders for up to $400 million of three note series

By Susanna Moon

Chicago, March 6 - R.R. Donnelley & Sons Co. said it began cash tender offers for up to $350 million of three series of notes on Thursday morning and then lifted the cap to $400 million later the same day.

R.R. Donnelley is offering to purchase for cash up to $100 million of its 7¼% notes due May 15, 2018, up to $250 million of its 8¼% notes due March 15, 2019 and up to $50 million principal amount of its 7 5/8% notes due June 15, 2020, according to a company press release.

Originally, the maximum principal amount of the 7 5/8% notes accepted was going to be $50 million reduced on a dollar-for-dollar basis to the extent that tenders for the other two series exceed $300 million. That is no longer the case, according to a separate press release revising the offer terms.

The total payment per $1,000 par amount will be $1,180.00 for the 7¼% notes, $1,207.50 for the 8¼% notes and $1,150.00 for the 7 5/8% notes.

The total purchase price will include $30.00 for each $1,000 of notes tendered by 5 p.m. ET on March 19, the early tender date.

Those who tender after the early deadline will receive the total amount less the early premium.

The company also will pay accrued interest up to but excluding the settlement date.

The tender offers will end at 11:59 p.m. ET on April 2.

Tendered notes may be withdrawn by 5 p.m. ET on March 19.

The offer is conditioned on completion of a $400 million public offering of notes due 2024 by the offer's settlement date.

BofA Merrill Lynch (888 292-0070 or 980 388-3646 collect), ING (646 424-6000) and Loop Capital Markets (888 294-8898 or 312 913-2275) are the dealer managers. Global Bondholder Services Corp. (866 470-3800 or 212 430-3774 collect) is the depositary and information agent.

The issuer is a Chicago-based provider of integrated communication solutions.

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