Office Depot begins roadshow for $250 million seven-year notes

By Paul A. Harris

Portland, Ore., March 6 - Office Depot, Inc. began a roadshow on Tuesday for a $250 million offering of seven-year senior secured notes, according to a syndicate source.

The roadshow, which will include presentations in New York, New Jersey, Boston, and on the West Coast of the United States, wraps up on Thursday.

Citigroup Global Markets Inc. is the left bookrunner. Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are joint bookrunners.

The Rule 144A and Regulation S with registration rights notes come with first-lien security and feature standard incurrence-based high-yield covenants.

The notes come with four years of call protection and feature a 101% poison put.

The Boca Raton, Fla.-based supplier of office products and services plans to use the proceeds to fund the tender offer for its 6¼% notes due 2013.

Moody's Investors Service is expected to assign its B2 corporate credit rating to Office Depot. Standard & Poor's is expected to assign its B- corporate credit rating.

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