Fitch rates R.R. Donnelley notes BB+

Fitch Ratings said it assigned R.R. Donnelley & Sons Co.'s (BB+/stable) proposed seven-year $300 million note offering a BB+ rating.

The company's long-term issuer default rating is BB+.

The outlook is stable.

Proceeds will be used to partially fund tender offers for up to $350 million of the 4.95% unsecured notes due April 2014 ($600 million) and 5.50% unsecured notes due May 2015 ($400 million).

The proposed terms are similar to that of previously issued notes.

Fitch noted that the proposed transaction reduces maturities in the medium term.

As of Dec. 31, gross unadjusted leverage to be 2.8 times, within the company's stated leverage target of 2.5x to 3.0x. In the near term, leverage could average at least 0.25x more than the company's target without affecting its 'BB+' credit rating.

The ratings reflect the company's scale and diverse product offering, and R.R. Donnelley is one of few well-capitalized competitors in this highly fragmented and large industry, according to the agency.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.