Lowenstein represents Chatham Asset Management LLC (Chatham) in its offer to buy the printing and marketing company R.R. Donnelley & Sons Co. (NYSE: RRD) (RRD) in a bid that values the company’s total equity at about $550 million and reduces debt, among other terms. Chatham holds a 14.9 percent equity stake and is R.R. Donnelley’s largest bondholder. The bid includes $7.50 per share in cash, which would value R.R. Donnelley’s total equity at $546 million, based on 72.8 million shares outstanding.
In a letter to the Board of Directors of R.R. Donnelley, Anthony Melchiorre, Managing Member of Chatham, states that Chatham is submitting this offer in good faith and with the goal of entering into a mutually agreeable transaction that is in the best interests of all stockholders, that RRD does not appear capable of achieving full and fair value as a public company under the current Board and management, and that RRD should be sold in order to maximize stockholder value. The letter notes that Chatham has retained an experienced team of advisors, including Lowenstein Sandler LLP as its legal advisors.
Chatham is a New Jersey-based credit investment firm focused on rigorous, fundamentally based research, with longstanding investments in the print media and marketing communications industries.
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