Moody's rates RR Donnelley notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to RR Donnelley & Sons Co.'s new $350 million senior unsecured notes.

RR Donnelley's corporate family rating and probability of default rating remain unchanged at Ba2 and Ba2-PD, respectively. The ratings on the company's senior secured credit facility and senior unsecured notes also remain unchanged at Baa2 and Ba3, respectively, and RR Donnelley's speculative grade liquidity rating remains unchanged at SGL-2 (good).

The outlook remains negative.

Proceeds from the new $350 million 10-year senior unsecured notes will be used to fund a portion of the recently announced roughly $705 million acquisition of Consolidated Graphics, which is ratings-neutral because pro form leverage remains substantially unchanged (it being noted that pre-funding the acquisition will cause nominal leverage to spike).

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