Moody's rates R.R. Donnelley notes Ba3

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

The company's corporate family rating was affirmed at Ba2, probably of default rating at Ba2-PD, senior secured credit facility at Baa2, senior unsecured notes at Ba3 and speculative grade liquidity rating at SGL-2.

The outlook remains negative.

The proceeds from the new notes, together with drawings under the company's $1.15 billion senior secured revolving credit facility due September 2017, will be used to fund tender offers for $400 million of outstanding notes drawn from issues with maturity dates in 2017 and 2018.

The company is weakly positioned at the Ba2 level because of elevated leverage and very weak industry fundamentals, evidenced by stalled revenue growth and a recent sequence of asset-impairment charges, Moody's said.

With organic revenue growth recently stalling and stagnate EBITDA, management is belatedly implementing more conservative debt-to-EBITDA policies, the agency said.

© 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.