By Paul A. Harris
Portland, Ore., March 6 - R.R. Donnelley & Sons Co. priced an upsized $400 million issue of non-callable 10-year senior notes (Ba3/BB-/) at par to yield 6% on Thursday, according to a syndicate source.
The deal was upsized from $350 million.
The yield printed on top of yield talk.
BofA Merrill Lynch was the left bookrunner for the public offering. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc. and Well Fargo Securities LLC were the joint bookrunners.
Proceeds, along with a draw upon the company's revolver, will be used to partially fund tender offers for up to $350 million of outstanding notes, including up to $250 million 8¼% notes due 2019, up to $100 million 7¼% notes due 2018 and up to $50 million 7 5/8% notes due 2020.
The issuer is a Chicago-based integrated communications company.
| Issuer: | R.R. Donnelley & Sons Co.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | April 1, 2024
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mitsubishi UFJ Securities, U.S. Bancorp Investments Inc., Well Fargo Securities LLC
|
| Co-managers: | Fifth Third Securities Inc., PNC Capital Markets, TD Securities, Comerica, Morgan Stanley & Co. LLC, Wedbush
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 326 bps
|
| Call protection: | Non-callable
|
| Make-whole call: | Treasuries plus 50 bps
|
| Trade date: | March 6
|
| Settlement date: | March 20
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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