New Issue: R.R. Donnelley prices upsized $450 million seven-year notes at par to yield 8¼%

By Paul A. Harris

Portland, Ore., Feb. 28 - R.R. Donnelley & Sons Co. priced an upsized $450 million issue of seven-year senior notes (Ba1/BB+/BB+) at par to yield 8¼% on Tuesday, according to a syndicate source.

The yield printed at the tight end of the 8¼% to 8½% price talk.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the deal, which was upsized from $300 million.

Proceeds will be used to partially fund tender offers for up to $350 million of the company's 4.95% notes due in 2014 and its 5½% notes due in 2015.

The issuer is a Chicago-based provider of premedia, printing, logistics and business process outsourcing products and services.

Issuer:	R.R. Donnelley & Sons Co.
Amount:	$450 million, increased from $300 million
Maturity:	March 15, 2019
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
Co-managers:	Citigroup Global Markets Inc., Mitsubishi UFJ Securities, U.S. Bancorp, ING, Scotia Capital, Fifth Third Securities, Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, Evercore Group LLC
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	688 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Feb. 28
Settlement date:	March 13
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
	Fitch: BB+
Distribution:	SEC registered
Price talk:	8¼% to 8½%
Marketing:	Quick to market

© 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.