R.R. Donnelley & Sons (RRD) : Chatham Asset Management has increased its offer to acquire the company to $10.85/share

 

Donnelley & Sons reports that Chatham Asset Management has increased its offer to acquire the company to $10.85/share in cash

• Chatham Asset Management, a private investment firm which manages funds that beneficially own approximately 14.9% of the outstanding common stock of R.R. Donnelley & Sons Company (RRD) and which is the largest bondholder of the company, responded to a press release issued today by RRD regarding its acceptance of a revised proposal from affiliates of Atlas Holdings LLC to acquire the company for $10.35 per share in cash.
• In a letter sent to RRD's Board of Directors, Chatham submitted an increased binding, fully financed offer to acquire all the common stock of the company not already owned by Chatham for $10.85 per share in cash.
• Chatham's increased offer will expire at 11:59 p.m. ET on December 13, 2021 unless it receives a countersigned merger agreement from the company.
• Chatham said, "RRD's Board has once again shirked its fiduciary duties and deprived stockholders of receiving a higher price for their shares by refusing to meaningfully engage with Chatham and agreeing to an inferior transaction with a higher, entirely avoidable termination fee and expense reimbursement. We urge the Board to act in the best interest of its stakeholders, declare our increased offer superior and proceed quickly to finalizing our proposed transaction."
• Note: Chatham's prior offer was $10.25/share. Earlier today, it was reported that Atlas Holdings increased its offer to $10.35/share from $8.52/share, which RRD's Board accepted.

R.R. Donnelley & Sons (RRD) : buyout offer from Chatham Asset Management at $7.50/share

The printing and marketing company received a buyout offer from its largest shareholder, 00.
The private investment firm that currently owns 14.9% shares and 41.4% debt in R.R. Donnelley has been chasing the company for more than a year now to restructure and unlock greater value for shareholders. 

 

 

 

 

 

 

 

R.R. Donnelley & Sons : Chatham Asset Management confirms offer to acquire R.R. Donnelly for $7.50/share in cash

• Chatham Asset Management, a private investment firm that manages funds that beneficially own approx. 14.9% of the outstanding common stock and which is the largest bondholder of R.R. Donnelley & Sons, today in a letter sent to RRD's Board submitted an offer to acquire all the common stock of RRD not already owned by Chatham for $7.50/share in cash.
• The transaction represents a 52.1% premium over yesterday's closing price of $4.93/share, a 6.2% premium over the 52-week high of $7.06/share, and a 92% premium over the 365-day volume-weighted average price of $3.9/share. Chatham would finance the transaction using cash on hand and external financing and has secured a highly confident letter from Jefferies Group supporting its ability to raise all necessary funds.
• To facilitate the transaction, Chatham is willing to equitize and/or subordinate its entire debt position, reducing RRD's total debt by 23%.
  • As a result, Chatham calculates that annual interest expense on a pro forma basis would decline by approx. $36 mln, or 33%.