ACCO Brands Corporation Announces Commencement of Offering of $500M of Senior Notes

ACCO Brands Corporation

today announced its plan to conduct a private offering, subject to market and other conditions, of $500 million in principal amount of senior notes due 2020 . The Notes will be offered by Monaco SpinCo., Inc., which is currently a subsidiary of MeadWestvaco Corporation and certain selling securityholders. SpinCo will be the new holding company for MWV's Consumer and Office Products business, which, as previously announced, MWV intends to distribute to its shareholders in a tax free spin-off, following which SpinCo will merge with a wholly owned subsidiary of ACCO Brands, with SpinCo continuing as the surviving corporation. At the effective time of the Merger, SpinCo will become a wholly owned subsidiary of ACCO Brands, which will unconditionally guarantee the Notes along with certain of its other subsidiaries. Following the Merger, SpinCo will merge with and into Mead Products LLC, a limited liability company of which ACCO Brands is the sole member, and as a result and upon completion of such second merger the Notes will become the obligation of Mead Products LLC, the surviving entity in that second merger, and ACCO Brands will become a co-issuer of the Notes. The exact terms and timing of the offering will depend upon market conditions and other factors. Of the $500 million in principal amount of Notes to be offered, $270 million in principal amount are expected to be initially issued to MWV and subsequently exchanged by MWV in satisfaction of certain indebtedness of MWV held by the selling securityholders. SpinCo will not receive any cash proceeds from the sale of the notes by the selling securityholders.