Florida-based Office Depot Inc. said Nov. 20 that it repriced its term loan credit agreement due 2022.
As part of the repricing, the office supplies retailer will repay $194 million under the term loan, which will reduce the outstanding principal amount to $500 million.
In addition, an amendment to the term loan will reduce the applicable interest margin by 175 basis points to the London interbank offered rate plus 525 basis points, effective Nov. 21. All other material provisions of the loan will stay the same.
Office Depot expects both moves to bring net annual interest expense savings of about $21 million in 2019 and $79 million over the rest of the term loan period.
The company's board of directors also approved a new $100 million stock repurchase authorization, effective Jan. 1, 2019. Under the current program, $41 million was still available for buybacks as of Sept. 29. That program expires Dec. 31 and will be followed by the new repurchase program.