Daily News: April 29, 2014

J.P. Morgan, Others Arrange Debt Financing for Quad/Graphics

Quad/Graphics announced it completed its previously announced $1.9 billion debt financing that includes refinancing, extending and expanding its $1.6 billion senior secured credit facility.

J.P. Morgan Securities, Bank of America,, U.S. Bank, PNC Capital Markets and SunTrust Robinson Humphrey were the lead arrangers of the credit facilities.

The facilities consist of a five-year $850 million revolving line of credit, a five-year $450 million bank term loan A, and a seven-year $300 million term loan B, as well as a high-yield bond offering of $300 million aggregate principal amount of its 7% senior unsecured notes due 2022.

“We are pleased to have closed on our debt offering, which is consistent with our ongoing disciplined approach to maintain a strong, flexible balance sheet and create value for all our stakeholders,” said Dave Honan, Quad/Graphics vice president and CFO. “Amending our Revolver, TLA and TLB facilities, and completing our inaugural high-yield bond offering of $300 million of unsecured senior notes extends and staggers the Company’s debt maturity profile, further diversifies our capital structure, and provides more borrowing capacity to better position our Company to execute on its strategic goals.”

Quad/Graphics expects to use the net proceeds from the TLA and TLB as well as the $300 million unsecured senior notes offering to repay its existing term loans, revolver borrowings and an international term loan; fund the acquisition of Brown Printing Company and for general corporate purposes.