R.R. Donnelley gets bridge loan, asset-based revolver commitments

By Sara Rosenberg

New York, Dec. 15 – R.R. Donnelley & Sons Co. has received a commitment for an up to $1.125 billion one-year senior secured bridge loan and an up to $550 million five-year asset-based revolving credit facility to help fund its purchase by Chatham Asset Management LLC, according to a SC 13D/A filed with the Securities and Exchange Commission on Wednesday.

The bridge loan is expected to be replaced with an up to $1.125 billion senior secured notes offering.

Jefferies Finance LLC is the sole lead arranger and bookrunner on the bridge loan, and Wells Fargo Bank is the sole lead arranger and bookrunner on the revolver.

Other funds for the transaction will come from equity financing.

Under the agreement, R.R. Donnelley is being bought for $10.85 per share in cash. The transaction has a total enterprise value of $2.3 billion and total equity value of around $897 million.

Closing is expected in the first half of 2022, subject to customary conditions, including stockholder approval and regulatory approvals.

R.R. Donnelley is a Chicago-based provider of multichannel business communications services and marketing solutions.

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