New Issue: R.R. Donnelley sells $450 million 7 7/8% eight-year notes at 99.5 to yield 7.961%

By Paul A. Harris

Portland, Ore., Feb. 28 - R.R. Donnelley & Sons Co. priced an upsized $450 million issue of non-callable 7 7/8% eight-year senior notes (Ba3/BB/) at 99.5 to yield 7.961% on Thursday, according to a syndicate source.

The deal was upsized from $350 million.

The yield came in line with yield talk in the 8% area.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA) Inc. and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market deal.

The integrated communications company plans to use the proceeds to partially fund the tender offers for its 6 1/8% notes due 2017, its 8.6% notes due 2016 and its 7¼% note due 2018.

Issuer:	R.R. Donnelley & Sons Co.
Face amount:	$450 million, upsized from $350 million
Proceeds:	$447.75 million
Maturity:	March 15, 2021
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, J.P. Morgan Securities LLC, Mitsubishi UFJ Securities (USA) Inc., Wells Fargo Securities LLC
Co-managers:	U.S. Bancorp Investments Inc., ING Financial Markets LLC, PNC Capital Markets LLC, Citigroup Global Markets Inc., Fifth Third Securities Inc., TD Securities (USA) LLC, Loop Capital Markets LLC, Morgan Stanley & Co. LLC, Comerica Securities Inc., Wedbush Securities Inc.
Coupon:	7 7/8%
Price:	99.5
Yield:	7.961%
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Trade date:	Feb. 28
Settlement date:	March 14
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	8% area
Marketing:	Quick to market

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