S&P rates R.R. Donnelley notes B+

S&P said it rated R.R. Donnelley & Sons Co.'s planned $350 million senior secured notes due 2026 BB+ with a 2 recovery rating. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 70%) recovery for lenders in default.

The company plans to use the proceeds to redeem $289 million of its term loan B facility due January 2024 ($539 million was outstanding as of Dec. 31)and pay down its revolver balance which the company will draw on to repay $55.6 million of the 8 7/8% debentures due Thursday.

“We view the proposed transaction to be neutral for leverage, and it would help extend the company's debt maturity schedule. Our issuer credit rating on RRD remains B with a stable outlook,” S&P said in a press release.

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