As previously announced, RR Donnelley intends to use the net proceeds from this offering, along with borrowings under its revolving credit facility, (1) to partially fund tender offers for up to $400 million aggregate principal amount of its debt securities, including up to $100 million of its 5.500% Notes due May 15, 2015, up to $100 million of its 6.125% Notes due January 15, 2017 and up to $200 million of its 7.250% Notes due May 15, 2018 and (2) to pay premiums in connection with those tender offers. The completion of each tender offer will be subject to customary closing conditions. If there are any remaining proceeds from the notes, RR Donnelley intends to use those proceeds to repay borrowings under its revolving credit facility and for general corporate purposes. Amounts repaid under its revolving credit facility may be reborrowed for general corporate purposes, including the repayment or redemption of other indebtedness.
Tuesday, August 27, 2013
RR Donnelley Closes $400 Million Debt Offering
As previously announced, RR Donnelley intends to use the net proceeds from this offering, along with borrowings under its revolving credit facility, (1) to partially fund tender offers for up to $400 million aggregate principal amount of its debt securities, including up to $100 million of its 5.500% Notes due May 15, 2015, up to $100 million of its 6.125% Notes due January 15, 2017 and up to $200 million of its 7.250% Notes due May 15, 2018 and (2) to pay premiums in connection with those tender offers. The completion of each tender offer will be subject to customary closing conditions. If there are any remaining proceeds from the notes, RR Donnelley intends to use those proceeds to repay borrowings under its revolving credit facility and for general corporate purposes. Amounts repaid under its revolving credit facility may be reborrowed for general corporate purposes, including the repayment or redemption of other indebtedness.
Teaching Your Old Direct Mail System New Tricks
Does your business need direct mail marketing in this age of digital
advertising? While many people think ‘no’, direct mail still has a place in
marketing. It all depends on how you are utilizing this medium. Don’t mass mail
plain old letters, that’s not going to bring in customers any more effectively
than placing a plain website with just your logo on it into cyberspace. There
are some tricks that will get your mail noticed instead of tossed.
Cost
While it might sound counter to what you’ve learned about direct mail,
sending advertising through snail mail may cost the same or even a little less
than digital advertising. The follow through on direct mail can be higher than
that of pay per click advertising. Clicks may not result in a sale, while still
costing your business up to or well over the amount of postage per direct
letter. Even with the addition of printing and envelopes, you may spend far
less on direct mail than digital advertising.Postcards
Postcards are an effective method for reaching an audience right at the mailbox. The postcards are easy to scan for information. A quick message can be conveyed to an audience without forcing them to open an envelope. People are aware of what they’ve received as opposed to blank envelopes that do not give any indication that the material inside is advertising. And more..
Dr. J. Webb on Vogue's Success
Why is Vogue not about the “power of print”? The Vogue story teaches a greater lesson that print businesses should take to heart. It’s not a “cheerleading print” story at all.
Ackman Sells Stake in J.C. Penney
Penney filed a prospectus with regulators giving notice that Mr. Ackman’s firm, Pershing Square Capital Management, planned to sell its 39.1 million shares. The retailer, which will not receive any proceeds from the sale, did not list an expected selling price.
Monday, August 26, 2013
North American P&W Paper Ships Reported
The Pulp and Paper Product Council has reported North American coated mechanical paper shipments for July fell -2,3%, as compared to the same month last year. Demand was down -0.7% and imports did not change. The operating rate was 91%. Coated woodfree shipments declined -1.2% for the month, demand fell -0.8% and imports increased by +3.5%. The operating rate was 87%. Uncoated woodfree shipments were up +1.3% in July, demand grew +3.7% and imports jumped +15.6%. The operating rate was 92%. SC-A/A+ paper shipments increased +31.9%, demand was up +30.6% and imports rose +28.7%. SC-B/SNC+ shipments were up +22.5% and demand grew +28%. The operating rate for Supercalendered paper was 91%.
G-P Completes Acquisition of Buckeye Technologies
http://www.gp.com/index.html
Georgia-Pacific
LLC and Buckeye Technologies Inc. (BKI) today completed the previously
announced acquisition of Buckeye by Georgia-Pacific. Under the merger
agreement, all outstanding shares of Buckeye Technologies' common stock were
converted into the right to receive $37.50 per share, net to the holder in cash,
without interest, subject to any withholding of taxes required by applicable
law. The transaction was valued at approximately $1.5 billion, including debt.
As
a result of the merger, Georgia-Pacific acquired all of the outstanding stock
of Buckeye Technologies, including ownership of its five manufacturing
facilities, global sales offices and headquarters. Employees of Buckeye
Technologies (approximately 1,200) are now employees of Georgia-Pacific as
Buckeye becomes a wholly owned subsidiary.
Burgo Names Board, CEO
The
Annual General Meeting of the Burgo Group has elected a new Board of Directors
that will be in office until the approval of 2015 annual report. The
Shareholders has confirmed Mr Girolamo Marchi, Mr Giorgio Cefis, Mr Alessandro
Bertani and Mr Enrico Benaglio as Board Director. Ms Martina Castegnaro, Chief
Controller Officer of Palladio - Zannini Industrie Grafiche SpA, Mr Alberto
Marchi, HGM SpA Director, Mr Paolo Mattei, Vice President of the European
Association of Graphic Paper Producers, Lorenzo Marzotto and Gianni Vallardi,
former Managing Director of Group Il Sole 24ore Newpaper Division, have been
elected as directors of Burgo Group for the first time.
Mr
Girolamo Marchi, former CEO of the Group, and Mr Giorgio Cefis, former Chairman,
has been appointed, respectively, Chairman and Vice - Chairman of Burgo Group
while Mr Paolo Mattei, former CEO of Cartiere del Garda and Senior Advisor to
the CEO of Lecta Group, will be CEO of the Group.
Cate Street Pays Katahdin Tax Bill
The
Katahdin region’s largest single taxpayer paid $1.42 million in property taxes
it owed East Millinocket and Millinocket this week, but that money won’t solve
the towns’ fundamental problems, officials said Thursday.
Wired
to the towns on Wednesday, the money diminishes but won’t end Millinocket’s
cash-flow crisis or East Millinocket’s need to further reduce school spending,
leaders in both towns say.Concessions from unions or cuts to public worker retiree benefits or higher taxes eventually might be necessary to keep town governments and schools operational, they said.
But the $363,171 to East Millinocket and $1,066,350 to Millinocket in principal and interest payments in overdue property taxes paid by Cate Street and its subsidiary, the new Great Northern Paper Co., are welcome, leaders said.
Direct Mail Market Trends
Drivers
and Barriers for Adoption of Color Digital
Within
the last few years we have seen the introduction of two high-speed inkjet
technologies aimed at the direct mail space..
Value
of color
As
with all new technologies, there are only two reasons to adopt it: it provides
additional value or it lowers costs..
Hybrid
Production
Both
high-speed inkjet presses and high-speed inkjet heads can deliver fully
variable color images. Using inkjet heads means the design is limited in size
to the width of the head, typically 4.25 wide..
Eliminating
Preprinted Forms
High-speed
inkjet presses can offer cost savings in addition to full color variable
imaging. Nearly all direct mail letters are first printed with an offset shell
and then overprinted with black laser..
Postal
Savings
High-speed
inkjet presses are enabling another cost savings and this one appears to be
significant. With one of these presses the direct mailer can run white paper in
and the completed job out providing the direct mailer with the option to
co-mingle jobs on press. This allows the direct mailer to bypass a cost center
(co-mingling) and create substantial savings.
Workflows
Being
able to print the output for a direct mail campaign is just part of the
challenge..
Ad
Spending
Direct
mail is just one of many choices for marketers today..
Cross
Media
While
according the 2012 Channel Preference Study conducted by Epsilon, direct mail
is still the most trusted channel, direct mail alone is not sufficient for
communicating with customers..
Summary
The
digital printing industry has been promoting the value of variable data
printing for quite some time now – a good solid ten years. Adoption occurred
first with low volume applications. Now, finally, we are seeing the large
direct mail suppliers purchasing high speed color inkjet presses and heads and
as the remaining barriers to adoption are being knocked down, we are seeing
adoption and rapid growth for high volume color digital printing of direct
mail.
ACMA Urges Cataloguers to Fight Postal Rate Case
Sadly, with less than 2% of the catalog industry participating in any industry trade association focused on national postal policy, we simply do not have the resources necessary to execute the most effective opposition to the exigency threat that we can think of.
If 8%-10% of your annual postal spend seems to be an enormous number, for a fraction of this amount, you can greatly reduce the likelihood that an exigent increase will be approved by the Postal Regulatory Commission by investing in an ACMA membership or by making a contribution to our postal action fund (more on that below). Even if the PRC grants an exigency request, mailers can still fight this in court. What’s more, Washington is obviously a very political environment. A well-orchestrated public relations campaign can also preempt an unfavorable exigency decision if executed now.
BoSacks: Defending Print the Right Way
http://www.piworld.com/article/bosacks-speaks-out-defending-print-the-right-way/1
Several
times this week I have been involved in correspondence and conversations about
QR codes and various other forms of augmented reality. The theory continuously
presented to me is that print will be saved by the use of augmented reality. It
is at that point I stick my feet into the ground, as I think there is nothing
much further from the truth on this subject than this thought process.
Here is my reason why although it is a good tool, it isn't something that you
could or would use on every page, or for any extended period in a printed
magazine. When we are offered a QR code or other AR launch system in a magazine
that takes us to the Web, we are then forced to balance two separate devices.
The Web product/cell phone/tablet in one hand and a magazine in the other hand,
or on your lap, or perhaps on the desk, making neither a comfortable long-term
reading experience. Continually sending people from the printed magazine page
to an electronic device defeats the purpose of having a good print product and
the concurrent rewarding lean back experience that we are all so proud of as an
industry. As the old expression goes, putting lipstick on a pig only wastes
your time and annoys the pig. Although AR indeed has its valuable moments and
its usefulness, AR is a distraction to the nature of our printed products. In
this case it is trying to fake the electrification of the printed page. If I
wanted to get online, I would have done so. If I chose to read a magazine, why
send me somewhere online? Does that make sense to you?
Fight the ‘Dead Tree Media’ Myth
The
public doesn’t want to make hard choices, and they don’t want their oxen gored.
They certainly don’t wish to be disabused of any cherished mistaken notions.
For this reason, the environmental advantages of print on paper as a medium of
information exchange are seldom addressed. A pity it is, for rarely has a
subject been so mired in misconception.
This means it is up to you and me to enlighten the public. Consider the following facts, which we all know to be true but are lost on the public at large:
Paper is carbon locking, meaning that paper retains carbon dioxide, just as if it were still a tree.
The paper industry plants more trees than it harvests. Without paper, there would be fewer trees.
No virgin forests are used for papermaking.
Only one-third of paper is made from cutting trees. Another third is made from sawmill waste and another third from recycled paper.
Newspapers in particular have been on the forefront of the recycling movement. Newspapers may very well be the greenest medium of all.
The manufacture and use of computers, e-readers and mobile devices is damaging to the environment. Ditto for the Internet and cloud computing, which rely upon vast arrays of power-gulping servers.
This means it is up to you and me to enlighten the public. Consider the following facts, which we all know to be true but are lost on the public at large:
Paper is carbon locking, meaning that paper retains carbon dioxide, just as if it were still a tree.
The paper industry plants more trees than it harvests. Without paper, there would be fewer trees.
No virgin forests are used for papermaking.
Only one-third of paper is made from cutting trees. Another third is made from sawmill waste and another third from recycled paper.
Newspapers in particular have been on the forefront of the recycling movement. Newspapers may very well be the greenest medium of all.
The manufacture and use of computers, e-readers and mobile devices is damaging to the environment. Ditto for the Internet and cloud computing, which rely upon vast arrays of power-gulping servers.
Digital Platforms Hot, Print Works
Of course, we will never return to those times when circulations grew and "rivers of gold" filled the corporate coffers. But there are growing indications the worst of the decline might be behind us. The time is now right for a reappraisal of print and newspapers in particular.
New research, here and in the US, comparing consumer use of digital platforms - whether they be desktops, laptops, tablets or smartphones - with printed editions of newspapers shows a previously obscure factor: the level of engagement between readers and their source of information.
Skateboader Magazine Shuttered
Skateboarder
Magazine announced Tuesday that it will cease publication later this year after
nearly 50 years of operations. The move follows the merger of GrindMedia and
TransWorld, which was announced in May
.
"Skateboarder Magazine will discontinue regular frequency publishing on
print and digital platforms effective Oct. 15, 2013," GrindMedia said in a
statement. "This week, Skateboarder will release its third digital edition
and companion limited edition print version, which will be its final
edition."
.
"Skateboarder Magazine will discontinue regular frequency publishing on
print and digital platforms effective Oct. 15, 2013," GrindMedia said in a
statement. "This week, Skateboarder will release its third digital edition
and companion limited edition print version, which will be its final
edition."
Friday, August 23, 2013
Domtar & PrintEco’s Partnership-Lessons Learned
Domtar Corporation is one of the largest and most innovative
paper companies in the world. Our company, PrintEco, is a two-year-old software
startup with a mission to help save paper and ink and protect the environment.
So when we announced our partnership with Domtar at SB ’13 in June, a lot of
our friends were like, “Congratulations! Wait ... a paper company?” Admittedly,
we’re a bit of an odd couple — but working with Domtar has taught us a lot
about branding and about sustainable business in general. Here’s what we’ve
learned: Domtar brands itself “The
sustainable paper company.” Sounds nice, but isn’t that an oxymoron? Turns out,
not in Domtar’s case. The company
commits more resources to sustainability initiatives than you can imagine,
including: Forest Stewardship Council™ (FSC®) certification at 100% of its
facilities, over a decade of collaboration with the Rainforest Alliance, Contribution
of over $1 million to World Wildlife Fund’s global conservation work over the
past three years, donation of a year’s supply of Domtar EarthChoice® Office
Paper to Recyclebank’s Green Schools Program. These programs provide a solid
operational backbone for Domtar’s sustainability messaging and give the brand
team plenty of specific achievements to share with its audience. Between
environmental issues and advances in paperless technology, the future of the
pulp and paper industry is fraught with uncertainty. If people stop printing
they won’t need PrintEco software, so the future of paper is important to us,
and a topic that we were glad to borrow Domtar’s expertise in considering. Such
a dynamic industry environment creates an opportunity for brands such as Domtar
to be proactive in guiding the evolution of their industry, rather than being
reactive. Domtar launched its Paper
Because campaign to educate people about the responsible use of paper. The
campaign website tells you, “Paper has value. It’s sustainable, personal and
purposeful — and the more we know about it, the more we can understand how to
make smart choices about when and how to use it.” Sound like some cheesy
marketing fluff? That’s what I thought, until I read some of the articles and
actually learned a lot about paper — while taking intermittent breaks to laugh
at some of their hilarious paper videos. ‘Ok,’ I thought, ‘responsible paper
use. I’m onboard.’ But I’m willing to say that the decision by Domtar
leadership to partner with PrintEco is a game-changer. People who use PrintEco
software will buy less paper, and that’s the bottom line. To me, the
partnership is Domtar’s way of saying, ‘We’re committed to sustainability, and
we’re willing to stake today’s profits on it for the sake of tomorrow’s
customers and our brand.’
Sartell Mill Demolition Is Approved
The process to erase a mainstay from the Central Minnesota
skyline could start as soon as next week. The Sartell City Council unanimously
approved Thursday an interim use permit to demolish the former Verso Paper
mill, which is now owned by AIM Development. Council member Steve Hennes was
not at the meeting. The work is expected to start this month and take 15 months
to complete. A portion of
the mill was destroyed in an explosion and fire last year. Its former owner
decided to cease operations and sold the property. The company will demolish
buildings, vertical concrete structures and metal. The company says that more
than 530,000 square feet of buildings and 104,000 of tanks and other items will
be removed. Up to 95 percent of the materials will be recycled, according to
the company. The only buildings that will remain are the office building,
hydroelectric operations and a warehouse. On Thursday the council also approved a development
agreement and structurally substandard buildings resolution. Those have to be
put in place in case a tax-increment financing district is created for the
site.
Winstone Pulp Price Increase
New Zealand’s Winstone Pulp International has announced a US$20/ton price increase for
Asia, effective Sept. 1, 2013 in softwood bleached chemi-thermomechanical pulp
(BCTMP). Winstone produces more than 160,000 tons/year of BCTMP.
Rodale Partners On New Waldorf Astoria Magazine
Created for the luxury traveler, Waldorf Astoria Hotels
& Resorts and Conrad Hotels & Resorts announced the launch of
individual magazines available both in-room and online, each with a distinct
voice and point of view offering inspiring design, arts, culinary, style and
travel content from preeminent lifestyle writers. “These exciting new magazines
not only extend our voice in the luxury space, but also allow us to provide
relevant lifestyle content through the unique lens of our Waldorf Astoria and
Conrad brands,” says John T.A. Vanderslice, global head, luxury and lifestyle
brands, Hilton Worldwide. “The debut of these beautifully curated magazines
reinforces the exceptional experiences awaiting each guest when they arrive at
one of our nearly 50 luxury properties around the world.” Published biannually in partnership with
publishing house, Rodale, print copies of the magazines are available in-room
at all Waldorf Astoria and Conrad hotels and resorts globally. Digital
versions, featuring videos and exclusive bonus content, are available free for
download via Flipboard and iTunes (for iPad) or the Google Play Store (for
Android), and at www.waldorfastoria.com/magazine or
www.conradhotels.com/magazine.
Mags, News, Brace For Postal Increase
Magazines, newspapers and direct marketers are girding for
the possibility that the U.S. Postal Service will pass an exigent rate increase
on top of the annual postal rate that is capped by the consumer price index.
The increase, made possible by a 2006 law that gives the postal service the
option to raise rates in case of extreme circumstances like a terrorist attack,
could be as high as 10 percent across the board. It couldn't come at a worse time for the media and marketing
industries that depend on mail service. "We're finally getting our footing back since the 2009
recession," said Mary Berner, president and CEO of the MPA, the
Association for Magazine Media. Magazines, for example, spend $3 billion
annually on postage. A 10 percent increase would add $300 million to an
industry that is already challenged. Some magazines could go out of business,
Berner warned. Others could cut back on mail delivery and redouble digital
efforts. But lobbyists are running out of time to convince the post office not
to jack up the rates. The Postal Board of Governors is scheduled to meet behind
closed doors on Sept. 5. Given that the U.S. Post Office is bleeding billions
of dollars each year, lobbyists fear a rate increase seems almost inevitable.
To fight the increase, the mailing industry brought back together the
Affordable Mail Alliance, a coalition of more than 50 organizations, including
the MPA, the Direct Marketing Association and the National Newspaper
Association. Three years ago, the group fought against the first exigent rate
increase and won, challenging it in court in a case that now lies dormant. In a
letter this week to the Postal Board of Governors, the group argued that a rate
increase would be self-defeating and could lessen the pressure on Congress to
enact much-needed postal reform. The group also asked the Board of Governors
for a personal meeting. "Right now, the [postal service] can't rationalize
their business. We're supportive of five-day delivery, consolidation of
facilities, and reduction in the cost of benefits," said Berner.
"This exigent increase is a distraction and it won't help the postal
system. We need to focus on legislation that gives the postal service the tools
they need." If the board of governors passes the increase (and all
expectations are that they will), the Postal Regulatory Commission will have 90
days to pass it. And if that happens, the mailing industry will be forced to
litigate, again. "That diverts time and resources away from coming up with
a long-term solution," Berner said.
Exigent Postal Rate Increase Is Feared Near
Exigent rate increase—three words that strike fear into the
hearts of direct mailers. It's an increase that comes above and beyond the
regular, annual rate adjustment, which is capped by the Consumer Price Index.
If passed, it could be a game-changer for marketers who depend on direct mail. Well, start trembling, mailers. The Affordable Mail Alliance
claims to have information that the Postal Board of Governors will be
considering such an increase in September. The Alliance, formed by concerned
associations including the Direct Marketing Association and the American
Catalog Mailers Association, sent a letter yesterday to Postal Board Chairman
Mickey D. Burnett warning of dire consequences to an exigent increase. “The
mailing industry, and its suppliers, responsible for $1.3 trillion in sales
annually, and nearly 8 million private sector jobs,” the letter read, “are
unanimous in our great concern that, notwithstanding the Postal Service's
ongoing financial predicament, an ‘exigent' increase would cause severely
adverse, and likely irrevocable, consequences for mail volume and
revenue." With Postmaster General Patrick Donahoe insisting that reform be
enacted immediately to save the Postal Service from financial disaster, the
threat of an exigent rate increase worries direct mailers.
Troy Young Restructures Hearst Digital Division
Hearst is restructuring its digital department. Although
specific details remain unclear, the new strategy calls for a “newsier
presence” and building “stronger relationships” between Hearst properties. Earlier this week, Hearst let two top editors go and then
promptly touted new digital hires. The reorganization comes not long after Troy
Young, who came to Hearst from Say Media, was appointed to the newly created
position of president of digital media at the company. “We’re focusing on editorial, design, and
media platforms to create stronger relationships between our properties and
their communities, and building a stronger, newsier presence, which means
making choices and creating new opportunities,” Mr. Young said in an email to
The Observer. “We’re continuing to hire for roles that will move our strategy
forward, and you’ll see our site experiences evolve quickly.” “Digital is a huge area of growth and
investment for us, and we’re having our most profitable year ever,” Mr. Young
said. In an email announcing its digital hires, Hearst touted big traffic gains
for both women’s titles. “In July, Cosmopolitan.com reached 12.2 million unique
visitors, its best month ever. ELLE.com reached 3.4 million unique visitors, up
26% versus last year,” the email read.
Gap Looks For Up Year
Gap raised its earnings-per-share outlook for the year
yesterday after its summer lineup helped boost second-quarter results and
advanced its turnaround push. The higher guidance was short of Wall Street expectations,
but the company also hiked its annual dividend by 20 cents, or 33 percent, to
80 cents per share. Its shares rose 1 percent to $42.43 in aftermarket trading.
Over the past year, the stock is up 21 percent. Gap owns Banana Republic, Old Navy, Piperlime, Athleta and
Intermix stores, in addition to its namesake chain. Gap’s more upbeat outlook
represents a bright spot in the broader industry. Major retailers including
Walmart, Target and Macy’s have lowered their expectations for the rest of the
year, citing the uncertain economy.
Koch Industries Not Buying Tribune Newspapers
Koch Industries will not be buying the Tribune Company’s
eight newspapers, which include the Chicago Tribune and the LA Times, The Daily
Caller has learned. Sources with knowledge of the business proceedings told The
Daily Caller that Koch Industries, after conducting its due diligence, has not
been interested in buying the newspapers for “a couple months.” The company
determined that purchasing the newspapers was “not economically viable” and
that both parties walked away from the negotiations, they said.
Zinio App Offers 3 Mags $5/Month
Magazine junkies on a budget, you might just flip over this.
The Zinio app – which lets you read more than 5,500 digital magazines on any
platform – is now offering a subscription model that costs $5/month for any
three of your favorite magazines. Not bad, considering many of the magazines
cost $4.99 for a single issue, such as T3, Car and Driver, PC Gamer, Rolling
Stone, Esquire and National Geographic. Some magazines cost less -- such as
$3.99 per issue for Cosmo, Us Weekly, Wine Access and TV Guide -- but $5 a
month for three magazines is still a deal. Called "Z-pass," you can
select which three magazines you want and change them up each month, if
desired. You don't need to commit for a certain amount of time to get the deal,
and the first month is free. You can access your Zinio magazines on virtually
all smartphones, tablets and computers (we reviewed the app on an iPad mini).
Magazines are downloaded to read offline, so you're fine if there's no Internet
connection when you want to read (such as on an airplane).
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