By Paul A. Harris
Portland, Ore., April 14 – R.R. Donnelley & Sons Co. priced an upsized $400 million issue of senior secured notes due Nov. 1, 2026 (B1/B+) at par to yield 6 1/8% on Wednesday, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 6¼% area. Initial guidance was in the mid-6% area.
The deal was heard to be playing to $850 million of demand early Wednesday afternoon, a trader said.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC and Truist Securities Inc.
The Chicago-based integrated communications company plans to use the proceeds to repay debt 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 incremental proceeds, resulting from the $50 million upsize of the deal, will also be applied to the term loan B debt.
The company intends pay off its outstanding $55.6 million of 8 7/8% debentures at maturity using borrowings under its ABL facility.
| Issuer: | R.R. Donnelley & Sons Co.
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| Amount: | $400 million
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| Maturity: | Nov. 1, 2026
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| Securities: | Senior secured notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC and Truist Securities Inc.
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| Senior co-managers: | U.S. Bancorp Investments Inc. and Fifth Third Securities Inc.
|
| Co-manager: | CJS
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| Coupon: | 6 1/8%
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| Price: | Par
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| Yield: | 6 1/8%
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| Call protection: | 2.5 years
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| Trade date: | April 14
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| Settlement date: | April 28
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| Ratings: | Moody's: B1
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% area
|
| Marketing: | Roadshow
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