RR Donnelley launches cash-for-debt offer, plans to sell $350 million in new notes
By APWednesday, August 19, 2009
RR Donnelley launches cash tender offer, new debt
CHICAGO — R.R. Donnelley & Sons Co. on Wednesday launched an offer to repurchase outstanding debt and said it will sell another $350 million in debt to fund the offer.
The printing services provider said it began a cash tender offer for all $625 million aggregate principal amount of its 5.625 percent notes due Jan. 15, 2012. The company is offering $1,015 for every $1,000 tendered.
It also began a tender offer for up to $125 million aggregate principal amount of its 4.95 percent notes due May 15, 2010. It is offering $1,010 for every $1,000 tendered.
The offer for the 2012 notes expires at 5 p.m. Eastern time on Aug. 26. The offer for the 2010 notes expires at 11:59 p.m. EDT on Sept. 16.
To fund the offer, R.R. Donnelley plans to launch a new offer for $350 million of notes due 2016. BofA Merrill Lynch and J.P. Morgan Securities Inc. are joint book-runners for the offering, the company said.
Shares of R.R. Donnelley fell 33 cents to $16.55 in morning trading.
