American Reprographics trims bonds to $200 million, restructures deal

By Paul A. Harris

St. Louis, Nov. 22 - American Reprographics Co. downsized its senior notes offering to $200 million from $220 million on Monday, according to a market source.

Meanwhile the tenor of the notes was reduced to seven years from eight years, and call protection was cut to three years from four years.

Although no official price talk circulated on Monday, discussions have been taking place in the mid-to-high 9% range, according to a trader from a high-yield mutual fund.

Earlier discussions took place in the low 9% range; however, weaker market conditions played a part in pushing rate discussions higher, the trader added.

The deal, which is in the market via Bank of America Merrill Lynch, is expected to price before Wednesday's close, the source said.

The Walnut Creek, Calif.-based provider of business-to-business document management will use the proceeds to repay and retire its existing senior secured credit facility, to pay swap termination costs and for general corporate purposes.

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