R. R. Donnelley & Sons entered into a $550 million senior secured term loan B credit facility with Bank of America as administrative agent.
According to the related 8-K filing, Citigroup Global Markets, JPMorgan Chase Bank, PNC Capital Markets and Wells Fargo Securities acted as co-syndication agents on the term loan.
R.R. Donnelley also contemporaneously amended its existing ABL credit agreement with Bank of America again as administrative agent. The amendment, among other things, permits the incurrence of the debt pursuant to the term loan and the incurrence of a lien on the ABL priority collateral to secure the obligations of the company and the guarantors under the term loan and related guarantees on a second-priority basis.
Borrowings under the term loan will bear interest, at the company’s option, at either one-week, one-month, two-month, three-month or six-month (or, if available to all the term loan lenders, twelve-month) LIBOR, plus either a margin of 5% or a base rate plus a margin of 4%.
The proceeds of the loans will be used for, among other things repayment of certain debt outstanding under the company’s amended ABL credit agreement, the consummation of the company’s tender offers and the payment of fees and expenses in connection with the foregoing.
The term loan will mature on January 15, 2024, at which time all amounts outstanding under the agreement will be due and payable. Commencing on March 29, 2019, the Company will be required to make regularly scheduled amortization payments of $1.375 million at the end each fiscal quarter until the maturity date.
R. R. Donnelley & Sons provides multichannel business communications services and marketing solutions. It has more than 50,000 customers and 43,000 employees across 34 countries and offers a comprehensive portfolio of capabilities, experience and scale that enables organizations to create, manage, deliver and optimize their marketing and business communications strategies.
