ARC Document Solutions, Inc. has announced that the company has concluded the open-market repurchase of approximately $5.3 million in aggregate principal amount of its 10.5% senior unsecured notes due December 15, 2016. Similar to the transaction announced on July 10, 2013, the recent repurchase was intended to reduce ARC's long-term debt and annual interest obligations, and made no use of the Company's $50 million revolving credit facility which remains undrawn.
"As we announced on our recent earnings call, our cash position grew at a healthy pace throughout the third quarter and we felt confident that deploying excess cash to deleverage the company remained the best option for its use," said K. "Suri" Suriyakumar, Chairman, President and CEO of ARC Document Solutions. "We continue to consider additional steps to further reduce our debt and interest obligations in the future provided conditions favor the company, and our performance and the economy continue to improve."
ARC's high-yield bonds were issued on December 1, 2010, in the aggregate principal amount of $200 million and are due in December 2016. The bonds are senior unsecured obligations of the Company, and bear an interest rate of 10.5% per annum, payable semi-annually on June 15 and December 15. The bonds contain an optional call provision dated December 15, 2013.