United Stationers gets $275 million revolver

By Sara Rosenberg

New York, March 28 - United Stationers Inc. closed on a new $275 million senior secured five-year revolver. Banc One Capital Markets Inc. arranged the facility and Bank One is the administrative agent.

The company declined to comment on the interest rate of the loan until an official document is filed with the Securities and Exchange Commission. The document is expected to be filed on Monday, according to a company spokesperson.

The revolver replaces the company's previous facility that included a $250 million revolver due in March 2004 and term loans totaling $96.4 million (as of Dec. 31, 2002) that would have fully amortized by June 2005, according to a news release.

Besides obtaining the new loan, the company also announced that it expanded its receivables securitization program to $225 million from $160 million and is calling its $100 million outstanding 8 3/8% senior subordinated notes due 2008 for redemption. The notes will be redeemed on April 28 at 104.188 plus accrued interest to the redemption date. The redemption will be financed through funds generated from operations, from the sale of accounts receivable under the receivables securitization program and from borrowings under the new revolver.

United Stationers is a Des Plaines, Ill. wholesale distributor of business products and a provider of marketing and logistics services to resellers.

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