ARC Document buys back portion of 10½% senior notes due 2016

By Marisa Wong

Madison, Wis., July 11 - ARC Document Solutions said it concluded the open-market repurchase of about $7 million principal amount of its 10½% senior notes due Dec. 15, 2016.

The repurchase was intended to reduce ARC's long-term debt and annual interest obligations and made no use of the company's $50 million revolving credit facility, which remains undrawn, according to a press release.

"As expected, our cash position through the second quarter has strengthened and we have worked through the majority of the costs associated with the restructure we implemented in the fourth quarter of 2012," K. "Suri" Suriyakumar, ARC chairman, president and chief executive officer, said in the release.

"While we have a number of opportunities to invest our excess cash, the most compelling was to deleverage the company by repurchasing a portion of our debt. We may consider additional steps to further reduce our debt and interest obligations in the future provided conditions favor the company, and our performance and the economy continue to improve."

ARC issued $200 million of the 10½% bonds on Dec. 1, 2010. The bonds are callable on Dec. 15.

The Walnut Creek, Calif.-based document solutions company provides services to the non-residential segment of the architecture, engineering and construction industries.

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