By Lisa Kerner
Charlotte, N.C., Nov. 25 - United Stationers Inc. announced an agreement to issue $150 million of 3.75% senior secured notes due 2021 to a group of investors.
The sale of the notes is scheduled to close on Jan. 15.
BofA Merrill Lynch and Wells Fargo Securities, LLC were the joint lead placement agents for the notes offering.
Proceeds will be used to retire $135 million of existing senior secured notes due October 2014 and to reduce bank borrowings, according to a company news release.
When United Stationers priced the notes, it terminated a swap transaction it had entered into on June 11. Taking into account the gain realized on the termination, the effective interest rate on the notes will be 3.66% per year.
"These notes represent an important diversification of our funding sources and allow us to convert a portion of our debt from floating to fixed, which reduces our exposure to rising interest rates," senior vice president and chief financial officer Todd A. Shelton said in the release.
United Stationers is a wholesale distributor of business products based in Deerfield, Ill.
| Issuer: | United Stationers Inc.
|
| Issue: | Senior secured notes
|
| Amount: | $150 million
|
| Coupon: | 3.75%
|
| Maturity: | Jan. 15, 2021
|
| Agents: | BofA Merrill Lynch and Wells Fargo Securities, LLC
|
| Announcement date: | Nov. 25
|
| Settlement date: | Jan. 15
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
