ARC Document Solutions Announces Closing of Tender Offer and Replacement of 10.5% Senior Notes With New 6.25% Term B Loan;

ARC Document Solutions Announces Closing of Tender Offer and Replacement of 
10.5% Senior Notes With New 6.25% Term B Loan;
Estimated 9 Cents Accretive to Earnings per Share 
WALNUT CREEK, CA -- (Marketwired) -- 12/20/13 --  ARC Document
Solutions, Inc. (NYSE: ARC) announced today that it has closed its
previously disclosed cash tender offer and consent solicitation
relating to its outstanding 10.5% Senior Notes due 2016 (the
"Notes"), and that it has provided notice for the redemption of all
remaining outstanding Notes. The company also announced that it has
entered into a new Term Loan Credit Agreement that consists of a term
loan facility in the amount of $200 million, the proceeds of which
will be used to fund the closing of the tender offer and the
subsequent redemption of the Notes. The new term loan facility bears
an initial annual interest rate of 6.25% (LIBOR plus 525 basis points
with a 1.0% LIBOR floor). The company expects to save more than $7
million in annual cash interest payments relative to the Notes, which
equates to approximately nine cents earnings per share. 
Pursuant to the terms of the previously disclosed cash tender offer
and consent solicitation relating to the Notes, the company has
accepted for payment approximately $127.5 million in aggregate
principal amount of the Notes that were validly tendered on or prior
to the consent payment deadline of 5:00 pm New York Time on December
16, 2013. Holders who tendered such Notes will receive $1,060 per
$1,000 in principal amount of the Notes validly tendered, plus
accrued and unpaid interest.  
The consents received in the consent solicitation exceeded the number
needed to approve the proposed amendments to the indenture under
which the Notes were issued. The terms of the tender offer and
consent solicitation for the Notes are detailed in the company's
Offer to Purchase and Consent Solicitation Statement dated December
3, 2013. Based on the consents received, the company and the trustee
under the indenture governing the Notes have entered into a
supplemental indenture that eliminates substantially all affirmative
and restrictive covenants and certain events of default under the
indenture governing the Notes, and provides for a shorter three
business day notice period required in connectio
n with an optional
redemption. 
In addition, the company intends today to discharge its remaining
obligations under the indenture governing the Notes by causing a
notice of redemption to be delivered to holders of the remaining
outstanding Notes and depositing funds sufficient to pay and
discharge all remaining indebtedness on the remaining outstanding
Notes, including accrued and unpaid interest.  
As noted above, the company also announced today that it has entered
into a new Term Loan Credit Agreement. The Term Loan Credit Agreement
consists of a term loan facility in the initial aggregate principal
amount of $200 million, the entirety of which was disbursed today in
order to pay a portion of the price associated with the purchase of
the Notes that were accepted under the tender offer and the
subsequent redemption of the remaining outstanding Notes, and to pay
associated fees and expenses in connection with the tender offer and
redemption.  
J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are acting
as Dealer Managers for the Tender Offer. Questions concerning the
Tender Offer may be directed to either J.P. Morgan Securities LLC at
(212) 270-3153 or Wells Fargo Securities, LLC at (866) 309-6316.
Wells Fargo Bank, National Association has been appointed to act as
the Depositary for the Tender Offer.  
This press release does not constitute an offer to sell, or a
solicitation of an offer to buy, any security. No offer,
solicitation, or sale will be made in any jurisdiction in which such
an offer, solicitation, or sale would be unlawful. 
About ARC Document Solutions (NYSE: ARC) 
 ARC Document Solutions is
a leading document solutions company serving businesses of all types,
with an emphasis on the non-residential segment of the architecture,
engineering and construction industries. The company helps customers
all over the world reduce costs and increase efficiency in the use of
their documents, improve document access and control, and offers a
wide variety of ways to print, produce, and store documents. ARC
provides its solutions onsite in more than 7,000 of its customers'
offices, offsite in service centers around the world, and digitally
in the form of proprietary software and web applications. For more
information please visit www.e-arc.com.  
Forward-Looking Statements 
 This press release contains
forward-looking statements that are based on current opinions,
estimates and assumptions of management regarding future events and
the future financial performance of the company. Words such as
"expected," "consider," "intended," and similar expressions identify
forward-looking statements and all statements other than statements
of historical fact, including, but not limited to, any projections
regarding earnings, revenues and financial performance of the
company, could be deemed forward-looking statements. We caution you
that such statements are only predictions and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those contained in the forward-looking statements. In
addition to matters affecting the construction, managed print
services, document management or reprographics industries, or the
economy generally, factors that could cause actual results to differ
from expectations stated in forward-looking statements include, among
others, the factors described in the caption entitled "Risk Factors"
in ARC Document Solution's Annual Report on Form 10-K for the fiscal
year ended December 31, 2012, Quarterly Reports on Form 10-Q, and
other periodic filings and prospectuses. The company undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise,
except as required by law.  
Contact Information:
David Stickney
VP of Investor Relations & Corporate Communications
+1-925-949-5114 
 
 
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