Office Depot amends loan, modifying fixed-charge coverage ratio

By Sara Rosenberg

New York, March 10 - Office Depot Inc. amended its credit facility, revising the minimum fixed-charge coverage ratio, according to an 8-K filed with the Securities and Exchange Commission Monday.

In addition, the amendment deletes the company's ability to incur liens relating to an accounts receivable securitization program and the ability to sell assets in connection with any such securitization program, limits liens securing other debt, imposes restrictions on investments and acquisitions, and on stock repurchases or redemptions, and permits certain liens, investments and debt, which were in existence as of Feb. 25.

The amendment will be canceled on the date that the fixed-charge coverage ratio is no less than 1.70 to 1.00, measured as of the last day of each of the two fiscal quarters ended immediately prior to that date.

The amendment was completed on March 7, but is effective as of Feb. 25.

Wachovia Bank is the administrative agent on the deal.

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

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