FRAMINGHAM, Mass.--(BUSINESS WIRE)--Staples, Inc. (Nasdaq: SPLS) announced today that it has priced a previously announced public offering of $500 million aggregate principal amount of its Senior Notes due January 12, 2018, at 2.75 percent coupon, and $500 million aggregate principal amount of its Senior Notes due January 12, 2023, at 4.375 percent coupon. Interest on the notes is payable in cash on a semi-annual basis. The offering is expected to close on January 14, 2013, subject to customary closing conditions.
Staples expects to receive net proceeds, after the underwriting discount, of approximately $993.8 million. The proceeds from the public offering will be used to fund Staples’ previously announced debt tender offer for up to $750 million aggregate principal amount of its outstanding 9.750% Senior Notes due 2014, if consummated, as well as for general corporate purposes.
Barclays Capital Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and HSBC Securities (USA) Inc. are acting as joint book-running managers.
The public offering is being made pursuant to an effective shelf registration statement on file with the U.S. Securities and Exchange Commission.
The offering of Senior Notes may be made only by means of a prospectus and prospectus supplement. A copy of the prospectus and prospectus supplement relating to the Senior Notes can be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, via telephone at 1-888-603-5847 or by emailing Barclaysprospectus@broadridge.com; Deutsche Bank Securities Inc., attention: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, via telephone at 1-800-503-4611 or by emailing email@example.com; or J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, attention: Investment Grade Syndicate Desk, or via telephone at 1-212-834-4533.
This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, Staples’ Senior Notes or any other securities, nor shall there be any sale of securities mentioned in this press release in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Staples is the world’s largest office products company and second largest internet retailer. The company provides products, services and expertise in office supplies, copy & print, technology, facilities and breakroom, and furniture. Staples invented the office superstore concept in 1986 and now has annual sales of $25 billion, ranking second in the world in eCommerce sales. With 88,000 associates worldwide, Staples operates in 26 countries throughout North and South America, Europe, Asia and Australia, making it easy for businesses of all sizes and consumers. The company is headquartered outside Boston.
Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including the statements regarding our intention to issue notes and our expected use of proceeds. These statements relate to future events and can generally be identified by words such as "expects" and "intends". Forward-looking statements are inherently uncertain. The closing of the offering is subject to a number of conditions, not all of which are within Staples' control. There is no assurance that Staples will successfully complete the offering or apply the proceeds of the offering as presently intended. Actual results may differ materially from those indicated by such forward-looking statements as a result of risks and uncertainties, including but not limited to the factors discussed or referenced in our most recent quarterly report on Form 10-Q filed with the SEC, under the heading "Risk Factors" and elsewhere, any subsequent periodic or current reports filed by us with the SEC and the preliminary prospectus relating to the offering that we have filed with the SEC. In addition, any forward-looking statements speak only as of the date such statements are made. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so.