SUSSEX,
Wis., Oct. 21, 2024 /PRNewswire/ --
Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a
global marketing experience company, today announced that it has
completed the ninth amendment to the Company's April 28, 2014, bank debt agreement to: (1)
reduce the aggregate amount of the existing revolving credit
facility from $342.5 million to
$324.6 million, and extend the
maturity of a portion of the revolving credit facility such that
$17.7 million under the revolving
credit facility will be due on the existing maturity date of
November 2, 2026 (the "Existing
Maturity Date") and $306.9 million
under the revolving credit facility will be due on October 17, 2029 (the "Extended Maturity Date");
(2) extend the maturity of a portion of the existing term loan
facility such that $14.5 million of
such term loan facility will be due on the Existing Maturity Date
and $351.3 million will be due on the
Extended Maturity Date; (3) make certain adjustments to pricing,
including an increase of .50% to the interest rate margin
applicable to the loans maturing on the Extended Maturity Date; and
(4) modify certain financial and operational covenants.
Tony Staniak, Quad Chief Financial
Officer, said: "We are pleased to have completed the amendment and
extension of our $690 million bank
debt agreement, which extends the maturity to October 2029, due to our strong relationships
with a syndicate of premier banks and our disciplined financial
management. By the end of 2024, we anticipate we will have reduced
our debt by over $670 million, or
65%, from January 1, 2020, and we
will continue to focus on debt reduction with our capital
allocation. This debt extension provides us with additional
financial flexibility to focus on the growth and development of our
offerings as a marketing experience company while returning capital
to our shareholders."
JPMorgan Chase Bank, N.A.; U.S. Bank National Association; PNC
Capital Markets LLC; BMO Capital Markets Corp.; BofA Securities,
Inc.; and Citizens Bank, N.A. were the Lead Arrangers of the bank
debt agreement. Foley & Lardner LLP served as legal counsel for
the Company, and Mayer Brown served as legal counsel for the
lenders.
About Quad
Quad (NYSE: QUAD) is a global marketing experience company
that helps brands make direct consumer connections, from household
to in-store to online. Supported by state-of-the-art technology and
data-driven intelligence, Quad uses its suite of media, creative
and production solutions to streamline the complexities of
marketing and remove friction from wherever it occurs in the
marketing journey. Quad tailors its uniquely flexible, scalable and
connected solutions to clients' objectives, driving cost
efficiencies, improving speed to market, strengthening marketing
effectiveness, and delivering value on client investments.
Quad employs approximately 13,000 people in 14 countries and
serves approximately 2,700 clients including industry leading
blue-chip companies that serve both businesses and consumers in
multiple industry verticals, with a particular focus on commerce,
including retail, consumer packaged goods, and direct-to-consumer;
financial services; and health. Quad is ranked among the largest
agency companies in the U.S. by Ad Age, buoyed by its
full-service Rise media agency
and Betty creative agency. Quad is also one the largest
commercial printers in North
America, according to Printing Impressions.
For more information about Quad, including its commitment to
ongoing innovation, culture and sustainable impact,
visit quad.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements include statements regarding,
among other things, our current expectations about the Company's
future results, financial condition, sales, earnings, free cash
flow, margins, objectives, goals, strategies, beliefs, intentions,
plans, estimates, prospects, projections and outlook of the Company
and can generally be identified by the use of words or phrases such
as "may," "will," "expect," "intend," "estimate," "anticipate,"
"plan," "foresee," "project," "believe," "continue" or the
negatives of these terms, variations on them and other similar
expressions. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause
actual results to be materially different from those expressed in
or implied by such forward-looking statements. Forward-looking
statements are based largely on the Company's expectations and
judgments and are subject to a number of risks and uncertainties,
many of which are unforeseeable and beyond our control.
The factors that could cause actual results to materially differ
include, among others: the impact of decreasing demand for printing
services and significant overcapacity in a highly competitive
environment creates downward pricing pressures and potential
under-utilization of assets; the impact of increased business
complexity as a result of the Company's transformation to a
marketing experience company, including adapting marketing
offerings and business processes as required by new markets and
technologies, such as artificial intelligence; the impact of
changes in postal rates, service levels or regulations, including
delivery delays; the impact of fluctuations in costs (including
labor and labor-related costs, energy costs, freight rates and raw
materials, including paper and the materials to manufacture ink)
and the impact of fluctuations in the availability of raw
materials, including paper, parts for equipment and the materials
to manufacture ink; the impact macroeconomic conditions, including
inflation, high interest rates and recessionary concerns, as well
as cost and labor pressures, distribution challenges and the price
and availability of paper, have had, and may continue to have, on
the Company's business, financial condition, cash flows and results
of operations (including future uncertain impacts); the inability
of the Company to reduce costs and improve operating efficiency
rapidly enough to meet market conditions; the impact of a
data-breach of sensitive information, ransomware attack or other
cyber incident on the Company; the fragility and decline in overall
distribution channels; the failure to attract and retain qualified
talent across the enterprise; the impact of digital media and
similar technological changes, including digital substitution by
consumers; the failure of clients to perform under contracts or to
renew contracts with clients on favorable terms or at all; the
impact of risks associated with the operations outside of
the United States ("U.S."),
including trade restrictions, currency fluctuations, the global
economy, costs incurred or reputational damage suffered due to
improper conduct of its employees, contractors or agents, and
geopolitical events like war and terrorism; the failure to
successfully identify, manage, complete and integrate acquisitions,
investment opportunities or other significant transactions, as well
as the successful identification and execution of strategic
divestitures; the impact negative publicity could have on our
business and brand reputation; significant capital expenditures and
investments may be needed to sustain and grow the Company's
platforms, processes, systems, client and product technology,
marketing and talent, and to remain technologically and
economically competitive; the impact of the various restrictive
covenants in the Company's debt facilities on the Company's ability
to operate its business, as well as the uncertain negative impacts
macroeconomic conditions may have on the Company's ability to
continue to be in compliance with these restrictive covenants; the
impact of an other than temporary decline in operating results and
enterprise value that could lead to non-cash impairment charges due
to the impairment of property, plant and equipment and other
intangible assets; the impact of regulatory matters and legislative
developments or changes in laws, including changes in
cybersecurity, privacy and environmental laws; the impact on the
holders of Quad's class A common stock of a limited active market
for such shares and the inability to independently elect directors
or control decisions due to the voting power of the class B common
stock; and the other risk factors identified in the Company's most
recent Annual Report on Form 10-K, which may be amended or
supplemented by subsequent Quarterly Reports on Form 10-Q or other
reports filed with the Securities and Exchange Commission.
Except to the extent required by the federal securities laws,
the Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Relations Contact
Don Pontes
Executive Director of Investor Relations, Quad
916-532-7074
dwpontes@quad.com
Media Contact
Claire Ho
Director of Corporate Communications, Quad
414-566-2955
cho@quad.com
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SOURCE Quad