After months of battling back and forth with Cenveo, rejecting buyout proposal after buyout proposal, Banta has settled with a buyout offer from R.R. Donnelly. The structure of the $515 million bank debt hasn't changed since it was originally launched on Oct. 17, but one investor suggested that the credit probably won't be around for too long.
"They'll probably close within the next month, get the acquisition by Donnelly done by the first or second quarter the facility will probably be out there for less than six months," he said. The UBS-led deal is financing a $400 million dividend to shareholders, and was a long time coming, a spokesman said. The remainder of the credit will be used to refinance existing debt. The company fought off a buyout from Robert Burton Sr. of Cenveo, which ended in a final offer of $50 per share, or $34 per share in the wake of the dividend.
On Oct. 31, R.R. Donnelly and Banta announced the acquisition, in which shareholders would receive $2.50 more than the final Cenveo offer: $36.50 per share after the dividend, which will pay out $16 per share. Questions regarding the timeline of the transaction were referred to a future Banta proxy filing with the Securities and Exchange Commission. Calls to a Banta spokesman were not returned.