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

S&P said it assigned B- issue-level and 5 recovery ratings to R.R. Donnelley & Sons Co.'s planned $250 million of secured junior-lien notes due 2028. The 5 recovery rating indicates modest (10%-30%, rounded estimate: 20%) recovery if the issuer defaults.

The ratings are consistent with S&P’s ratings on RR. Donnelley’s unsecured notes.

The company is expected to use the proceeds to repay the remaining $41 million balance of its 6 1/8% senior secured notes and $38 million of its first-lien term loan both due 2026 and redeem $141 million of its pay-in-kind notes, including a make-whole premium. The rest will be used to fund fees and expenses and general corporate purposes.

The outlook is stable.

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