Office Depot details $1.25 billion asset-based revolver

By Jennifer Chiou

New York, Oct. 9 - Office Depot Inc. disclosed details of its new $1.25 billion asset-based revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission.

The company closed on the facility on Sept. 26. The facility matures on Sept. 26, 2013.

It bears interest at for the first two quarters at Libor plus 300 basis points with an initial commitment fee of 50 bps.

After the initial period, if less than 50% of the facility is in use, the commitment fee is 37.5 bps. Otherwise, the commitment fee is 50 bps.

As for spread, it will be Libor plus 325 bps if less than $250 million is available under the facility; Libor plus 300 bps if more than $250 million but less than $500 million is available; Libor plus 275 bps if more than $500 million but less than $750 million is available; and Libor plus 250 bps if more than $750 million is available.

JPMorgan acted as the administrative agent on the deal, with Bank of America the syndication agent, and Citibank Wachovia Bank and General Electric Corp. the documentation agents.

Proceeds were used to replace the company's previous $1 billion revolver.

At close, $365 million was drawn under the new facility and $135 million was used for letters of credit.

Office Depot is a Delray Beach, Fla.-based supplier of a range of office products and services.

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