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S&PCORRECT: Office Depot Inc. Proposed $250 Million Senior Secured Notes Rated 'B-'; Recovery Rating '4' Mar 12 Product Image

S&PCORRECT: Office Depot Inc. Proposed $250 Million Senior Secured Notes Rated 'B-'; Recovery Rating '4' Mar 12

  • ID: 2084397
  • March 2012
  • Standard & Poors

Abstract
CHICAGO (Standard & Poor's) March 6, 2012--Standard & Poor's Ratings Services said today that it assigned its 'B-' issue-level rating to U.S.-based Office Depot Inc.'s (B-/Stable/--) proposed $250 million seven-year senior secured notes, which we expect to be privately placed under rule 144A without registration rights. The recovery rating on the proposed notes is '4', indicating that lenders could expect average (30% to 50%) recovery in the event of a payment default or bankruptcy. At close, the existing $400 million 6.25% senior unsecured notes due August 2013 will become senior secured obligations of the company, though we view its proposed collateral package as being weaker than the proposed collateral package securing the new $250 million notes. The 'CCC+' rating on...

Companies mentioned in this report are: Office Depot Inc.
Action: New Rating

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.

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