New Issue: R.R. Donnelley upsizes to $600 million, prices seven-year notes at par to yield 7¼%

By Paul A. Harris

Portland, Ore., May 17 - R.R. Donnelley & Sons Co. priced an upsized $600 million issue of non-callable seven-year senior notes (Ba1/BB+/) at par to yield 7¼% on Tuesday, an informed source said.

The yield printed on top of price talk.

Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $500 million.

The Chicago-based integrated communications company plans to use the proceeds to fund a tender offer for all of its outstanding 11¼% notes due 2019 and to fund a partial tender offer for some of its other outstanding notes.

Issuer:	R.R. Donnelley & Sons Co.
Amount:	$600 million, increased from $500 million
Maturity:	May 15, 2018
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
Co-managers:	Mitsubishi UFJ Securities, US Bancorp, Fifth Third Securities, Inc. PNC Capital Markets LLC, Scotia Capital, TD Securities, UBS Investment Bank
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	483 bps
Call protection:	Non-callable (Make-whole provision at Treasuries plus 50 bps)
Trade date:	May 17
Settlement date:	June 1
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
Distribution:	SEC registered
Price talk:	7¼% area
Marketing:	Quick to market

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