Each RRD shareholder of record as of the close of business on September 23, 2016, the record date for the distribution, will receive on the distribution date one share of LSC Communications common stock and one share of Donnelley Financial common stock for every eight shares of RRD common stock held as of the record date. The RRD board also approved the implementation of a 1:3 reverse stock split for RRD, which was previously approved by RRD’s shareholders at the annual meeting in May 2016 and will become effective immediately following the distributions on Oct. 1, 2016.
Upon distribution, RRD shareholders will own approximately 80.75% of the common shares of LSC Communications and Donnelley Financial and RRD will own the remaining 19.25% of the common shares of LSC Communications and Donnelley Financial. RRD intends to dispose of its remaining ownership interest in each of LSC Communications and Donnelley Financial within 12 months of the spinoffs.
“By operating as three independent companies, we believe the new RRD, LSC Communications and Donnelley Financial will each be able to leverage our shared history of innovation while being better positioned to capitalize on new opportunities in their respective markets,” Thomas J. Quinlan, CEO of RRD, said.
Following the spinoffs, all three companies will be listed on the New York Stock Exchange. RRD shares will continue to trade on the NYSE under the ticker symbol “RRD.” LSC Communications shares will trade under the symbol “LKSD,” while Donnelley Financial shares will trade under the symbol “DFIN.”
RRD expects that on or about September 21, 2016, shares of LSC Communications and Donnelley Financial will trade on a “when issued” basis and that “when distributed” trading in RRD shares will commence alongside “regular way” trading for RRD shares. LSC Communications and Donnelley Financial will begin “regular way” trading on Oct. 3, 2016, at which time “regular way” trading in RRD shares will reflect both the distribution of the LSC Communications and Donnelley Financial shares and the reverse stock split.