Office Depot may try to amend ABL loan to allow for cash dividends

By Sara Rosenberg

New York, Feb. 23 - Office Depot Inc. is considering an amendment to its ABL credit facility to allow for preferred stock dividends to be paid in cash later this year, according to a news release.

During the fourth quarter of 2009, the company recorded dividends on its convertible preferred stock of about $15 million. These dividends, however, had to be paid-in-kind by increasing the liquidation preference on the amount of the preferred stock because the ABL facility does not currently allow cash dividends.

At the end of December, the company had nothing drawn on its ABL facility and had $726 million of availability.

Office Depot is a Boca Raton, Fla.-based provider of office products and services.

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