Quad/Graphics extends $1.1 billion credit facility, enters rate swap

By Wendy Van Sickle

Columbus, Ohio, Feb. 21 – Quad/Graphics, Inc. amended its $1.1 billion credit facility on Feb. 10, extending the debt’s maturity by two years to 2021 while maintaining the existing cost of borrowing and covenant structure, according to a press release.

The amendment reduced the maximum borrowing capacity under the revolving credit facility to $725 million from $850 million and replaced the existing term loan A with a new $375 million term loan A.

Quad/Graphics also entered into a five-year interest rate swap to swap $250 million of variable-rate debt into fixed-rate debt at 3.9%. The swap locks in 62% of the company’s debt rate structure as fixed-rate debt with an overall blended average interest rate of 5%, according to the release.

“We believe that locking in a portion of our variable-rate debt structure at a low fixed interest rate is a prudent way of taking additional risk off our balance sheet in a potentially rising interest rate environment. These transactions and our continued focus on reducing debt levels is consistent with our ongoing disciplined approach to maintain a strong and flexible balance sheet,” Dave Honan, Quad/Graphics executive vice president and chief financial officer, said in the release.

Quad/Graphics is a Sussex, Wis.-based printer and media channel integrator.

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