CHICAGO (Standard&Poor's) June 25, 2009--Standard&Poor's Ratings Services said today that its ratings and outlook on Boca Raton, Fla.-based Office Depot Inc. (B/Negative/--) are not immediately affected by the company's recent announcement that it sold $350 million of perpetual convertible preferred stock to BC Partners Inc., including $275 million of redeemable Series A convertible preferred stock and $75 million of Series B redeemable conditional convertible preferred stock, which is convertible to common stock upon shareholder approval. Dividends of the preferred will initially be paid-in-kind at 10% per year, and cannot be paid in cash unless certain conditions under its existing credit agreement are met. The transaction provides BC Partners with an initial ownership interest in the company
