Standard & Poor's Ratings Services has completed a review of the recovery and issue-level ratings assigned to the Boca Raton, Fla.-based Office Depot Inc. following the announced issuance of $250 million in senior secured notes. The company will use the proceeds from the issuance to partly pay down the existing senior notes. Our recovery analysis simulates a default occurring in 2013, a result of a meaningful decline in retail and business solution profitability. Office Depot's pro forma capital structure consists of an unrated $1 billion asset based revolving (ABL) credit facility due 2016, $250 million senior secured notes due 2019, $150 million senior notes maturing in 2013, $248 million in capital leases, and $18.8 million in other debt. The unrated...
Companies mentioned in this report are: Office Depot Inc.
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