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Staples to tender for Corporate Express' 8¼%, 7 7/8% notes this week
By Angela McDaniels
Tacoma, Wash., May 19 - Staples, Inc. said it is planning an all-cash tender offer for the 8¼% senior subordinated notes due 2014 and 7 7/8% senior subordinated notes due 2015 issued by Corporate Express NV subsidiary Corporate Express U.S. Finance Inc.
The company expects to begin the offer later in the week, according to a Monday news release from Staples.
Staples is conducting the tender offer through its subsidiary, Staples Acquisition BV, in connection with its €2.8 billion offer to acquire Corporate Express, which it is carrying out via an €8.00-per-share tender offer for the company's ordinary shares.
In February, Corporate Express shot down rumors that it was in discussions with Staples about a takeover. A few weeks later, Staples made an unsolicited €7.25-per-share bid to acquire the company, which Corporate Express rejected. Staples then increased the offer price to €8.00 on May 13 and took the offer public on Monday.
Staples is also holding tender offers for Corporate Express' preference shares A and 2% subordinated convertible bonds due 2010, which were slated to begin Tuesday. The offer prices are €3.15 per share for the preferreds and €1,164.72 per €1,000 principal amount for the convertible.
Those offers will expire at 11:30 a.m. ET on June 27 and are conditioned on Staples accepting a minimum of 75% of Corporate Express' ordinary share capital.
Staples, an office superstore based in Framingham, Mass., will finance the offers with proceeds from a $3 billion credit agreement with Lehman Brothers Inc., Bank of America and HSBC Bank USA, with cash reserves and with borrowings under its revolving credit facility.
Corporate Express is a business-to-business office supply company based in Amsterdam.
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