R.R. Donnelley starts roadshow for $250 million five-year junior-lien notes; pricing Wednesday

By Paul A. Harris

Portland, Ore., July 17 – R.R. Donnelley & Sons Co. started a roadshow on Monday for a $250 million offering of five-year junior-lien secured notes, according to market sources.

Initial guidance has the deal coming with a 9¾% coupon at an original issue discount of 95.25 for an all-in yield of approximately 11%, according to a sellside source.

Pricing is set for Wednesday.

The Rule 144A and Regulation S for life notes become immediately callable and remain callable through the first year at par plus the full coupon. The call premium declines ratably to par in year five.

Jefferies LLC is the sole bookrunner. Apollo Global Securities LLC, PNC Capital Markets LLC, U.S. Bancorp Investments Inc. and Fifth Third Securities Inc. are the co-managers.

The Chicago-based provider of marketing, packaging, print, and supply chain solutions plans to use the proceeds to redeem the remaining balance of its 6 1/8% senior secured notes due 2026, pay down the its first-lien term loan and pay down its 10% HoldCo PIK notes.

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