R.R. Donnelley tenders for $400 million of 6 1/8%, 8.6% and 7¼% notes

By Susanna Moon

Chicago, Feb. 28 - R.R. Donnelley & Sons Co. said it began tender offers for up to $400 million principal amount of its $525 million outstanding of 6 1/8% notes due 2017, $350 million outstanding 8.6% notes due 2016 and $600 million outstanding 7¼% notes due 2018.

The company plans to tender for up to $250 million of its 6 1/8% notes, up to $100 million of its 8.6% notes and up to $50 million of its 7¼% notes, according to a press release.

For each $1,000 principal amount, the total purchase price will be $1,065.00 for the 6 1/8% notes, $1,137.50 for the 8.6% notes and $1,045.00 for the 7¼% notes.

The total payment includes an early tender premium of $30 per $1,000 of notes tendered by 5 p.m. ET on March 13, the early tender date.

Those who tender after the early deadline will receive the total payment less the early premium.

Holders also will receive accrued interest to but excluding the settlement date.

The tender offers will end at 11:59 p.m. ET on March 27.

Tendered notes may be withdrawn by 5 p.m. ET on March 13.

If the company receives tenders for more than the offer cap, the notes will be purchased on a prorated basis, the release noted.

Funding for the offer will come from the company's planned $350 million of senior notes due 2021, along with borrowings under its revolving credit facility, according to a separate company press release.

The offers are conditioned on the company completing the notes issue but are not contingent upon the tender of any minimum principal amount of notes.

BofA Merrill Lynch (888 292-0070 or collect 646 855-3401), JPMorgan (800 245-8812 or collect 212 270-1200), PNC Capital Markets LLC (412 762-8420) and U.S. Bancorp (877 558-2607 or collect 612 336-7604) are the dealer managers. Global Bondholder Services Corp. (866 873-6300 or collect 212 430-3774) is the depositary and information agent.

R.R. Donnelley is a Chicago-based integrated communication solutions provider.

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