Moody's assigns B3 to Donnelley notes

Moody's Investors Service said it assigned a B3 rating to R.R. Donnelley & Sons Co.'s (RRD) planned $250 million of secured junior-lien notes due in 2028.

Moody's also affirmed the company's B3 corporate family rating, B3-PD probability of default rating, B1 senior secured term loan rating, and Caa1 senior unsecured notes ratings.

RRD plans to use the $250 million planned proceeds from the new secured junior lien notes to repay about $141 million to the holders of the 10% Holdco payment-in-kind (PIK) notes due 2031 at RRD Parent, Inc., repay the remaining $41 million of the senior secured notes due 2026 and reduce the term loan B by $38 million. The transaction raises RRD's consolidated debt by about $80 million, increasing financial leverage (debt/EBITDA) to 6.8x from 6.6x.

The outlook remains stable.

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