RRD Invests in Solicore; plans $500M Debt Offering

CHICAGO—RR Donnelley (RRD) has taken an equity position in Solicore. Headquartered in Lakeland, FL, Solicore is a leader in embedded power solutions, providing patented products to manufacturers of smart cards, RFID devices, medical products and electronic sensors.

In addition to this equity investment, RR Donnelley and Solicore have entered into a commercial agreement to develop the next generation of integrated power solution products. The joint development agreement will leverage RR Donnelley’s proprietary imaging technologies and Solicore’s patented embedded power solutions to deliver products using a combination of gravure, offset, flexographic and digital printing processes.

In other Donnelley news, the company plans to offer $500 million of senior notes due 2018 in an underwritten public offering. The company intends to use all or a portion of the net proceeds from the offering of the notes to fund a tender offer for any and all of its outstanding 11.25 percent notes due 2019. It will be based on a market premium to be determined and a partial tender offer for certain of its other outstanding notes and debentures based on prices to be determined. The completion of each such tender offer will be subject to customary closing conditions.

Meanwhile, Bloomberg News reported that Moody’s Investors Service, Standard & Poor’s and Fitch Ratings all cut the Donnelley’s debt grade to junk. Credit-default swaps on the printer went up 7.8 basis points to a mid-price of 312.8 basis points, Bloomberg reported, citing data compiled by CMA.

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