RR Donnelley in $1.75bn refinance

By Simon Nias, Monday 20 December 2010

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RR Donnelley, the world's largest printer, has signed up to a new $1.75bn (1.13bn) revolving credit agreement with a group of lenders that includes Bank of America, Citibank, JP Morgan, Morgan Stanley, Merrill Lynch, and Wells Fargo.

The $1.75bn facility replaces the company's previous credit agreement, dated 8 January 2007, and all amounts outstanding under the previous agreement were repaid from the new facility, which will expire on 17 December 2013 (subject to a possible one-year extension).

Under the terms of the new agreement, the company has entered covenants to maintain an interest coverage ratio (ICR) greater than or equal to 3.0 and a leverage ratio of less than or equal to 4.0.

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