New Issue: R.R. Donnelley upsizes to $400 million, prices 8.5-year notes at par to yield 7%

By Paul A. Harris

Portland, Ore., Aug. 12 - R.R. Donnelley & Sons Co. priced an upsized $400 million issue of non-callable 8.5-year senior notes (existing ratings Ba3/BB) at par to yield 7% on Monday, according to a syndicate source.

The deal was upsized from $350 million, and the yield printed at the tight end of the 7% to 7¼% yield talk.

BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities LLC and U.S. Bancorp were the joint bookrunners.

The Chicago-based provider of integrated communication solutions plans to use the proceeds, together with a draw on its revolver, to partially fund the tender offers for up to $350 million of its debt securities including the 5½% notes due 2015, the 6 1/8% notes due 2017 and the 7 ¼% notes due 2018.

Issuer:	R.R. Donnelley & Sons Co.
Amount:	$400 million, increased from $350 million
Maturity:	Feb. 15, 2022
Securities:	Senior notes
Bookrunners:	BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities LLC, U.S. Bancorp
Co-managers:	Mitsubishi, Wells Fargo Securities LLC, Fifth Third, PNC Capital Markets, TD Securities, Morgan Stanley, Comerica, Wedbush
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	464 bps
Call protection:	Non-callable
Make-whole:	Treasuries plus 50 bps
Investor put:	101% upon change of control
Trade date:	Aug. 12
Settlement date:	Aug. 26
Existing ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	7% to 7¼%
Marketing:	Quick to market

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