Donnelley Financial to redeem most of 8¼% notes due 2024

By Rebecca Melvin

Concord, N.H., June 1 – Donnelley Financial Solutions Inc. plans to redeem its 8¼% senior notes due 2024 which become redeemable, in whole or in part, on Oct. 15, according to a company news release on Tuesday.

As of March 31, about $233 million remained outstanding on the notes.

The bonds will be purchased at a price of 102.063 plus accrued and unpaid interest, and the company plans to fund the redemption with proceeds of a new $200 million delayed-draw term loan A facility.

The term loan was part of an amended and restated credit agreement, which also extends the maturity of a $300 million revolving facility to May 27, 2026.

The amendments to the now $500 million credit agreement, originating on Sept. 30, 2016, enhance the company’s capital structure and financial position by reducing interest once the notes are called in October. At current interest rates, the expected annualized interest savings is about $14 million, and given the ability to prepay the term loan without penalty, the savings could increase, the company said.

Based in Chicago, the risk and compliance company provides software and other services to public and private companies in global capital and investment markets.

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