RTTNews | Oct 12, 2021 11:04AM EDT

11:04 Tuesday, October 12, 2021 (RTTNews.com) - Shares of R. R. Donnelley & Sons Company (RRD) are spiking more than 35% Monday morning following buy-out proposal from Chatham Asset Management, LLC for $7.50 per share, to be paid in cash.

In a letter sent to R. R. Donnelley's Board of Directors, Chatham said, "Despite our efforts to engage with the Board on ways to position the business for long-term success, 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."

The deal represents a 52.1% premium over Monday's closing price of $4.93 per share, a 6.2% premium over the 52-week high of $7.06 per share, and a 92% premium over the 365-day volume-weighted average price of $3.91 per share.

Currently, Chatham is the beneficial owner of about 14.9% of RRD's outstanding common stock and 41.4% of the aggregate principal amount of RRD's outstanding bonds.

To facilitate the transaction, Chatham said it is willing to equitize and/or subordinate its entire debt position, reducing RRD's total debt by 23%, resulting in a decline of about $36 million or 33% in annual interest expense on a pro forma basis.

RRD is at $6.68. It has traded in the range of $1.2- $7.15 in the last one year.

Read the original article on RTTNews ( https://www.rttnews.com/3232129/r-r-donnelley-sons-zooms-35-on-buy-out-proposal-from-chatham.aspx)

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