The Chicago-based printing company offered an interest rate of 11.25% on the debt, which will be repaid by 1 February 2019.

The debt pricing comes just days after RR Donnelley revised its profit forecast downwards resulting in an 11% drop in its share price.

A City insider told PrintWeek: “It sounds like they had a lot of debt that they needed to repay soon which was probably causing them a headache so they’ve tried to replace it with a long-term loan (ten years in this case).

“This is a sensible thing to do at the moment with debt markets so uncertain – raise money whenever you can, almost irrespective of the price, as you don’t know whether you’ll be able to when you need it in a month’s time.

He added that the debt raising was a “reasonably good sign” for the company, despite the high interest rate, as it remains difficult for many companies to raise money in the bond markets.

Read the original article at www.printweek.com.

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