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Staples to launch tender offer for Corporate Express' 2% convertibles Tuesday
By Angela McDaniels
Tacoma, Wash., May 19 - Staples, Inc. said it will begin an all-cash tender offer for Corporate Express NV's 2% subordinated convertible bonds due 2010.
The company is offering €1,164.72 per convertible, according to a Monday news release from Staples.
The tender offer was slated to begin at 3 a.m. ET on Tuesday and will expire at 11:30 a.m. ET on June 27.
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.
The tender offer for the convertibles is conditioned on Staples accepting a minimum of 75% of Corporate Express' ordinary share capital.
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 a €3.15-per-share tender offer for Corporate Express' preference shares A and plans to launch a tender offer later this week for the 8¼% senior subordinated notes due 2014 and 7 7/8% senior subordinated notes due 2015 issued by Corporate Express U.S. Finance Inc.
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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