Acco Brands to bring $350 million bonds to fund spinoff and merger

By Paul A. Harris and Sara Rosenberg

New York, June 28 - Acco Brands Corp. plans to sell $350 million of senior subordinated notes in a Rule 144A offering or other private placement, the company said in a recent filing with the Securities and Exchange Commission.

The company also disclosed that it has received a commitment for a $350 million junior secured term loan C as a back up for the bond deal.

This week the company will launch a $750 million credit facility via Citigroup and ABN Amro, according to a market source.

Proceeds will be used to help fund Fortune Brands Inc.'s spinoff of Acco World Corp. and the merger of Acco with General Binding Corp. to form a new entity called Acco Brands.

Immediately following the merger, Fortune Brands stockholders and Acco World's current minority stockholder will together own 66%, and General Binding's stockholders will own 34%, of the shares of common stock of the new company on a fully diluted basis.

Acco is an Illinois-based supplier of branded office products.

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