New Issue: R.H. Donnelley's upsized $1 billion 10-year notes yield 8 7/8%

By Paul A. Harris

St. Louis, Sept. 19 - R.H. Donnelley Corp. priced an upsized $1 billion issue of 10-year senior notes (B) at par to yield 8 7/8% on Wednesday, according to an informed source.

The notes priced in the middle of the 8¾% to 9% price talk.

JP Morgan ran the books for the quick-to-market Rule 144A and Regulation S with registration rights issue, which was upsized from $650 million.

Proceeds will be used to refinance R.H. Donnelley Inc.'s 10 7/8% senior subordinated notes due 2012 and to repay a portion of the company's term loan. The additional proceeds will be used to fund the bridge loan at the holding company level.

The issuer is a Cary, N.C., yellow pages and print directory advertising products company.

Issuer:	R.H. Donnelley Corp.
Amount:	$1.0 billion (increased from $650 million)
Maturity:	Oct. 15, 2017
Security description:	Senior notes
Bookrunner:	JP Morgan
Co-lead managers:	Banc of America Securities LLC, Bear Stearns & Co., Credit Suisse, Deutsche Bank Securities, Wachovia Securities
Co-managers:	Barclays Capital, BNP Paribas, GE Capital Markets, ING Financial Markets, RBS Greenwich Capital, Scotia Capital
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Spread:	435 bps
Call features:	Callable on Oct. 15, 2012 at 104.438, 102.958, 101.479, par on and after Oct. 15, 2015
Equity clawback:	Until Oct. 15, 2010 for 40% at 108.875
Change-of-control put:	101.0
Trade date:	Sept. 19
Settlement date:	Oct. 2
Rating:	Standard & Poor's: B
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	8¾% to 9%

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