Chatham Offers To Acquire R.R. Donnelley & Sons; Shares Jump - Quick Facts

Private investment firm Chatham Asset Management, LLC has announced an offer to acquire all the common stock of R.R. Donnelley & Sons Company (RRD), not already owned by Chatham, at a price equal to $7.50 per share. To facilitate the deal, Chatham is willing to equitize and/or subordinate its entire debt position, reducing RRD's total debt by 23%. This would result in a decline in annual interest expense of approximately $36 million or 33% on a pro forma basis, Chatham noted.

"We no longer have confidence in RRD's ability to achieve full and fair value as a public company under the current Board and management team," said Chatham.

Chatham is the largest bondholder of R.R. Donnelley & Sons Company beneficially owning approximately 14.9% of RRD's outstanding common stock and 41.4% of the aggregate principal amount of RRD's outstanding bonds.

Shares of R.R. Donnelley & Sons were up 30% in pre-market trade on Tuesday.

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