R.R. Donnelley starts roadshow for $350 million 5.5-year secured notes; initial talk mid-6% area

By Paul A. Harris

Portland, Ore., April 13 – R.R. Donnelley & Sons Co. started a roadshow on Tuesday for a $350 million offering of senior secured notes due 2026 (expected ratings B1/B+), according to market sources.

The deal, which was set to kick off on a Tuesday conference call with investors, comes with initial guidance in the mid-6% area, a trader said.

The roadshow runs through Thursday.

BofA Securities Inc. is the left bookrunner. J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC and Truist Securities Inc. are the joint bookrunners.

U.S. Bancorp Investments Inc. and Fifth Third Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life notes, which have a tenor of approximately 5.5 years, become callable after 2.5 years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the coupon during the non-call period and have a 101% poison put.

The Chicago-based integrated communications company plans to use the proceeds to repay approximately $289 million outstanding under its existing term loan B, as well as to pay down its amended and restated senior secured asset-based revolver and for general corporate purposes.

The company intends pay off its outstanding $55.6 million of 8 7/8% debentures at maturity using borrowings under its ABL facility.

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