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Office Depot to settle early tenders Wednesday in oversubscribed offer
By Susanna Moon
Chicago, March 12 - Office Depot, Inc. said it set the early settlement date for Wednesday in the offer to buy up to $250 million of its $400 million of 6¼% senior notes due 2013.
As the offer has been oversubscribed, the company will purchase the notes on a prorated basis, according to a press release. Tendered notes may no longer be withdrawn.
Holders also will receive accrued interest up to but excluding the settlement date.
The offer will continue to run until midnight ET on March 16. It began Feb. 17.
Office Depot said it expects to satisfy or waive the conditions to the offer by the early settlement date.
The company said on March 6 that it had received tenders for $359,185,000 principal amount, or 89.8%, of the notes as of 5 p.m. ET on March 2, the early tender date.
As previously reported, the payment will be $1,050 for each $1,000 principal amount of notes. This includes a premium of $30 for each note tendered by the early tender date.
The tender offer is conditioned on the completion of a debt financing, and Office Depot priced $250 million of seven-year senior secured notes at par to yield 9¾% on March 9. Office Depot also will use borrowings under its senior secured asset-based revolving credit facility to fund the offer.
Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106) and Bank of America Merrill Lynch (888 292-0070 or 646 855-3401) are the dealer managers. Global Bondholder Services Corp. (866 470-3900 or 212 430-3774) is the depositary and information agent.
Office Depot is a Boca Raton, Fla.-based supplier of office products and services.
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