Markets

RR Donnelley Gets Sweetened Cash Buyout Bid of $10.25 per Share From Chatham

5:58PM ET 11/29/2021 MT Newswires
RR Donnelley & Sons (RRD) received an increased cash buyout offer of $10.25 per share from Chatham Asset Management, up from the private investment firm's previous bid of $9.10 per share, Chatham said late Monday.

Earlier in the day, business marketing materials provider RR Donnelley said it received a takeover offer of $10 per share in cash from an undisclosed strategic party as part of its go-shop process. On Nov. 3, Atlas agreed to acquire RR Donnelley for $8.52 per share in cash, but was outbid by Chatham.

In a Monday letter to RR Donnelley's board, Chatham said its sweetened buyout offer is supported by a debt commitment letter of up to $1.68 billion led by Jefferies Finance and a capital commitment letter of up to $350 million from Chatham. The offer also includes an agreement by Chatham to pay the $20 million termination fee and expense reimbursement to Atlas should RR Donnelley agree to a deal with Chatham instead of Atlas.

Chatham said it reserves the right to alter its offer if RR Donnelley does not declare the firm's offer a superior proposal by 5 pm ET on Dec. 1.

RR Donnelley shares were up 2.2% in extended trading.