Cenveo Corporation, announced that on Friday June 10, it closed on an exchange offer whereby approximately 80% of its outstanding 11.5% Senior Notes due 2017 were exchanged for newly issued 6.000% senior notes due 2024 and warrants to purchase shares of common stock, par value $0.01 per share, of Cenveo, Inc., representing in the aggregate 16.6% of the outstanding Common Stock, at an exercise price of $1.50 per share, and related refinancing transactions. Cenveo, Inc., a Colorado corporation, is a holding company and holds all of the capital stock of the Company. Robert G. Burton, Sr., Chairman and Chief Executive Officer, stated: "We are delighted to have achieved these important milestones with our refinancing transactions. With the closing of the Exchange Offer and related transactions, and other signed transactions, Cenveo emerges a stronger company with lower debt, higher cash flow due to significantly lower interest expense, and no significant scheduled debt maturities until August 2019. We are confident that with our improved free cash flow and increased liquidity as a result of the new $50 million secured term note financing, we have sufficient cash to address the nearly $50 million of 11.5% Notes and 7.0% exchangeable senior notes that remain outstanding following this closing. These financing transactions enable the Company to continue to capitalize on its leadership position within its three business segments by significantly reducing the refinancing and disruption risk associated with the 2017 debt maturities. We are very excited about the future of our company and very appreciative of our longtime lenders who have supported us during these transactions."
Small towns across America are highly dependent on the large manufacturing facilities located within their local communities to provide good-wage jobs and benefits. Based on two recent corporate decisions by LSC Communications, the community in Mattoon, Ill., has reason to celebrate, while local residents and small businesses in Gallatin, Tenn., are facing the expected fallout of a major employer leaving town.
Chicago-based LSC Communications is planning to expand its manufacturing operations and workforce headcount at its Mattoon, Ill., book, magazine and catalog printing facility in 2017, the Journal Gazette/Times-Courier reported. At the same time, The Tennessean revealed that LSC Communications is planning to close its 42-year-old Gallatin, Tenn., operation, with layoffs of approximately 144 workers employed there beginning in late March. The Gallatin facility once employed more than 620 workers, making it the largest private employer there at one point, the newspaper said.
According to The Tennessean, LSC Communications cited “changing market conditions” as a reason for the closure in a letter that was sent to the city. “(LSC Communications) has been a provider of great jobs for a long, long time,” Gallatin Mayor Paige Brown said. “They have certainly made a grand imprint on Gallatin and we are very, very sad with this announcement.”
The mood, meanwhile, in Mattoon, Ill., is much more upbeat.
As reported in the Journal Gazette/Times-Courier, Paul Smith, VP of operations at the Mattoon plant, indicated that various equipment upgrades and new work will result in the addition of about 50 new full- and part-time positions there. “We are installing a couple more pieces of manufacturing equipment, as well as upgrading and expanding several manufacturing assets so that we can better serve our customer base,” Smith was quoted as saying. “Additionally, several of our existing customers are moving additional titles to Mattoon and we are on-boarding a few new customers, as well.”
He noted that additional hiring is also being driven by the desire to reduce overtime hours for the gravure and web offset printing facility’s existing workforce, which is targeted to eventually reach around 800 full-time workers this year.
“We produce over 500 million bound products annually; serve the magazine, catalog, retail, financial and government print sectors; and have multiyear contracts with our largest customers,” Smith said, noting that production runs range from 100,000 into the millions.
The newspaper added that LSC Communications is scheduled to host a career fair for prospective employees from 9 am to 6 pm on Tuesday, Feb. 7, at the Burgess-Osborne Auditorium, 1701 Wabash Ave., in Mattoon.
LSC Communications was created as a publicly held spinoff when RR