Office Depot gets $1 billion amended, restated asset-based revolver

By Sara Rosenberg

New York, May 26 - Office Depot Inc. closed on a $1 billion amended and restated five-year asset-based revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

JPMorgan Chase Bank is the administrative agent on the deal that was completed on May 25.

Proceeds were used to replace a $1.25 billion revolver.

Through the amendment and restatement, the company reduced pricing on its credit facility by 50 basis points and gained permission to repurchase its existing 6¼% senior notes subject to a $600 million minimum liquidity requirement.

Also, the availability threshold that would trigger maintenance of a fixed charge coverage ratio was lowered to $125 million from $187.5 million.

Furthermore, the company's ability to make investments, loans and advances was increased by meeting a fixed charge coverage ratio of 1.0 and reduced availability test, or a new $500 million minimum liquidity requirement.

Additionally, the company is permitted to pay up to $75 million per year in restricted payments subject to a reduced $500 million minimum liquidity requirement, and additional restricted payments are permitted based on meeting a fixed charge coverage ratio that was reduced from 1.25 to 1.10 and reduced availability test.

There is a $250 million accordion feature.

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

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