R.R. Donnelley buys back $441.76 million of 4.95% notes, 5½% notes

By Angela McDaniels

Tacoma, Wash., March 27 - R.R. Donnelley & Sons Co. accepted $441,759,000 of its 4.95% notes due April 1, 2014 and 5½% notes due May 15, 2015 for purchase, according to a company news release.

A tender offer for the notes began on Feb. 28 and expired at 11:59 p.m. ET on March 26.

The company offered to purchase up to $350 million of the $600 million 4.95% notes and up to $100 million of the $400 million 5½% notes. These caps were increased from $300 million and $50 million, respectively.

Holders tendered $341,759,000 of the 4.95% notes, and all of the notes were accepted for purchase. The majority of these notes, $340,534,000, were tendered by 5 p.m. ET on March 12, the early tender date, and settled on March 13. The remainder was expected to settle on March 27.

Holders had tendered $192,211,000 of the 5½% notes as of the early tender date. The company accepted $100 million of these on a prorated basis. It made payment on March 13 and said it would not accept any additional notes.

For each $1,000 principal amount, the purchase price is $1,050 for the 4.95% notes and $1,035 for the 5½% notes. These amounts include an early tender premium of $30 for each note tendered by the early tender date.

The company will also pay accrued interest up to but excluding the applicable settlement date.

The offer was conditioned on the completion by R.R. Donnelley of a public offering of not less than $300 million principal amount of notes due 2019 no later than the early settlement date. The offers were not contingent on the tender of any minimum amount of notes.

The company priced an upsized $450 million issue of seven-year senior notes at par to yield 8¼% on Feb. 28.

The dealer managers of the tender offer were Bank of America Merrill Lynch (888 292-0070 or 646 855-3401), Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Mitsubishi UFJ Securities (877 649-6848). The depositary and information agent was Global Bondholder Services Corp. (866 857-2200 or 212 430-3774).

R.R. Donnelley is a Chicago-based provider of premedia, printing, logistics and business process outsourcing products and services.

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