Bloomberg News

Quad/Graphics Said to Set Rate on $300 Million Refinancing Loan

June 28, 2011

June 28 (Bloomberg) -- Quad/Graphics Inc., the Sussex, Wisconsin-based provider of printing and graphic-design services, set the rate it will pay on a $300 million loan to support a debt refinancing, according to a person with knowledge of the matter.

The company is proposing to pay three percentage points more than the London interbank offered rate and the lending benchmark will have a 1.25 percent floor, said the person, who declined to be identified because the terms are private.

Quad/Graphics is offering to sell the seven-year debt at 99-99.5 cents on the dollar, the person said, reducing proceeds for the borrower and boosting the yield for investors.

JPMorgan Chase & Co. is leading the transaction, which includes an $800 million revolving line of credit and a $400 million term loan A, both due in five years, the person said.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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