New Issue: Office Depot prices $250 million seven-year notes at par to yield 9¾%

By Paul A. Harris

Portland, Ore., March 9 - Office Depot, Inc. priced a $250 million issue of seven-year senior secured notes (B2/B-/) at par to yield 9¾% on Friday, according to a syndicate source.

The yield printed at the wide end of the 9½% to 9¾% yield talk.

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 were joint bookrunners.

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.

Issuer:	Office Depot, Inc.
Amount:	$250 million
Maturity:	March 15, 2019
Securities:	Senior secured notes
Bookrunners:	Citigroup Global Markets Inc. (left books), Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
Coupon:	9¾%
Price:	Par
Yield:	9¾%
Spread:	833 bps
Call features:	Make-whole call at Treasuries plus 50 bps until March 15, 2016, then callable at 104.875, 102.438, par on and after March 15, 2018
Equity clawback:	35% at 109.75% until March 15, 2015
Change-of-control put:	101%
Trade date:	March 9
Settlement date:	March 14
Ratings:	Moody's: B2
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	9½% to 9¾%
Marketing:	Roadshow

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