Office Depot Inc. Senior Secured Term Loan Rating Raised To 'BB-', Recovery Rating Revised To '1' On Voluntary Repayment

NEW YORK (S&P Global Ratings) Nov. 15, 2018--S&P Global Ratings today raised its issue-level rating on Boca Raton, Fla.-based office supplies provider Office Depot Inc.'s senior secured term loan due 2022 to 'BB-' from 'B+' and revised the recovery rating to '1' from '2'. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 90%) recovery of principal for term loan lenders in the event of a payment default. We raised our rating on the senior secured term loan because Office Depot plans to reprice the loan and make a substantial voluntary repayment of about $200 million, which will reduce the outstanding balance to $500 million. All of our other ratings on the company remain unchanged. ISSUE

...NEW YORK (S&P Global Ratings) Nov. 15, 2018--S&P Global Ratings today raised its issue-level rating on Boca Raton, Fla.-based office supplies provider Office Depot Inc.'s senior secured term loan due 2022 to '##-' from 'B+' and revised the recovery rating to '1' from '2'. The '1' recovery rating indicates our expectation for very high (90%-100%; rounded estimate: 90%) recovery of principal for term loan lenders in the event of a payment default. We raised our rating on the senior secured term loan because Office Depot plans to reprice the loan and make a substantial voluntary repayment of about $200 million, which will reduce the outstanding balance to $500 million. All of our other ratings on the company remain unchanged. ISSUE RATINGS--RECOVERY ANALYSIS Key analytical factors + We raised our issue-level rating on the company's $500 million (reduced from original principal balance of $750 million) senior secured term loan due 2022 to '##-' and revised the recovery rating to '1'. The '1'...

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