CHICAGO, June 1, 2021 /PRNewswire/ -- Donnelley
Financial Solutions, Inc. (NYSE: DFIN), (the
"Company") today announced that it amended and restated its
Credit Agreement dated as of September 30,
2016 to, among other things, provide for a $200 million delayed-draw term loan A facility
(the "Delayed-Draw Term Loan A Facility") and extend the maturity
of the $300 million revolving
facility to May 27, 2026.
The proceeds of the Delayed-Draw Term Loan A Facility may only
be used to redeem or repurchase the Company's 8.250% Senior Notes
due 2024 which become redeemable, in whole or in part, on or after
October 15, 2021 at the redemption
price of 102.063, plus accrued and unpaid interest, if any. The
commitments under the Delayed-Draw Term Loan A Facility will expire
on November 1, 2021. As of
March 31, 2021, approximately
$233 million remained outstanding on
the 8.25% Senior Notes due 2024.
"The amendments to our revolving credit facility, in conjunction
with the Delayed-Draw Term Loan A, further enhance our capital
structure and financial position. In addition, the
significant reduction in the interest rate from the existing 8.25%
notes to the Term Loan A is expected to benefit our net earnings
and cash flow once these notes are called in October. At
current interest rates, the expected annualized interest savings is
approximately $14 million, and given
the ability to pre-pay the Term Loan A without penalty, that
savings could increase," said David A.
Gardella, DFIN's executive vice president and chief
financial officer.
Gardella continued, "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. This 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."
Daniel N. Leib, DFIN's president
and chief executive officer, added, "This transaction and the
resulting capital structure provide ample liquidity and financial
flexibility. Going forward, we expect to maintain the same
disciplined approach to capital deployment that we have taken
historically."
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 and its
expectations relating to future financial condition and
performance. 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