Office Depot tender for 6¼% notes oversubscribed at early deadline

By Angela McDaniels

Tacoma, Wash., March 6 - Office Depot, Inc. said it had received tenders for $359,185,000 principal amount, or 89.8%, of its $400 million of 6¼% senior notes due 2013 as of 5 p.m. ET on March 2, the early tender date in a tender offer that began Feb. 17.

As previously reported, the company is offering to purchase up to $250 million principal amount of the notes. Office Depot said it reserves the right to waive or increase the tender cap.

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.

Holders also will receive accrued interest up to but excluding the settlement date.

The offer will end at midnight ET on March 16.

The tender offer is conditioned on the completion of a debt financing. 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 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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