Donnelley Financial Solutions Announces Redemption of Senior Notes

Rhea-AI Summary

Donnelley Financial Solutions (NYSE: DFIN) announced a notice for the redemption of $233 million in 8.250% Senior Notes due 2024 on October 15, 2021. The redemption price is set at 102.063% of the principal, plus any accrued interest. The redemption will be financed through a $200 million draw on a term loan facility and cash reserves. This refinancing is projected to save approximately $14 million in annual interest costs. The notes are managed by DTC, so holders need not take action for payment.

Positive

• Expected annualized interest savings of approximately $14 million.
• Debt redemption demonstrates proactive financial management.

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• None.

CHICAGO, Sept. 15, 2021 /PRNewswire/ -- Donnelley Financial Solutions, Inc. (NYSE: DFIN), (the "Company") announced today that it has delivered a redemption notice to Wells Fargo Bank, National Association to redeem on October 15, 2021, all of the outstanding $233,001,000 aggregate principal amount of 8.250% Senior Notes due 2024 issued by the Company (the "Notes"). The redemption price for the Notes will be 102.063% of outstanding principal amount of the Notes, plus accrued and unpaid interest, if any, to, but not including the Redemption Date (the "Redemption Price").  Capitalized terms used herein, and not otherwise defined, have the meanings assigned to them in the Indenture, dated as of September 30, 2016, between the Company and Wells Fargo Bank, National Association, as trustee.

The Notes are held only in book-entry form through The Depository Trust Company ("DTC").  DTC will redeem the Notes in accordance with its procedures and notify holders.  Holders of the Notes need not take any action to receive payment of the redemption price.

The Company intends to fund the redemption with a $200 million draw on the Delayed Draw Term A Loan Facility available under its Credit Agreement and cash on its balance sheet.

"At current interest rates, the expected annualized interest savings on the refinancing is approximately $14 million," said David A. Gardella, DFIN's executive vice president and chief financial officer.  "In addition, while this structure subjects our remaining debt to interest rate movements, a rising rate environment would reduce the net liability related to our defined benefit pension plans.  Such a reduction would decrease the amount of required annual contributions, and potentially allow us to annuitize the plans at no cost, eliminating altogether our net pension liability and the related future contributions."

About DFIN

DFIN is a leading global risk and compliance solutions company. We provide domain expertise, enterprise software and data analytics for every stage of our clients' business and investment lifecycles. Markets fluctuate, regulations evolve, technology advances, and through it all, DFIN delivers confidence with the right solutions in moments that matter. Learn about DFIN's end-to-end risk and compliance solutions online at DFINsolutions.com or you can also follow us on Twitter @DFINSolutions or on LinkedIn.

Use of Forward-Looking Statements

This news release includes certain "forward-looking statements" within the meaning of, and subject to the safe harbor created by, Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the business, strategy and plans of DFIN, its expectations relating to future financial condition and performance, and its ability to annuitize its pension plans. Statements that are not historical facts, including statements about DFIN management's beliefs and expectations, are forward-looking statements. Words such as "believes," "anticipates," "estimates," "expects," "intends," "aims," "potential," "will," "would," "could," "considered," "likely," "estimate" and variations of these words and similar future or conditional expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. While DFIN believes these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond DFIN's control. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon future circumstances that may or may not occur. Actual results may differ materially from DFIN's current expectations depending upon a number of factors affecting the business and risks associated with the performance of the business. These factors include such risks and uncertainties detailed in DFIN periodic public filings with the SEC, including but not limited to those discussed under "Risk Factors" in DFIN's Form 10-K for the fiscal year ended December 31, 2020, those discussed under "Cautionary Statement" in DFIN's quarterly Form 10-Q filings, and in other investor communications of DFIN's from time to time. DFIN does not undertake to and specifically declines any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect future events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.

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SOURCE Donnelley Financial Solutions

FAQ

What is the redemption date for DFIN's Senior Notes?

The redemption date for DFIN's Senior Notes is October 15, 2021.

How much will DFIN save annually through the redemption of Senior Notes?

DFIN expects to save approximately $14 million annually through the redemption of Senior Notes.

What is the total amount of DFIN's Senior Notes being redeemed?

DFIN is redeeming a total of $233 million in Senior Notes.

How will DFIN finance the redemption of the Senior Notes?

DFIN will finance the redemption through a $200 million draw on a term loan facility and cash from its balance sheet.