Office Depot (NYSE:ODP) announces that it has successfully repriced its term loan credit agreement to lower the interest rate by 175 basus points.
As part of the repricing, the Company will repay ~$200M of the outstanding term loan to bring the outstanding balance to $500M. The company expects an annual net interest expense savings of ~$21M.
The Office Depot board also authorized a new stock repurchase program for up to $100M worth of shares. The new buyback plan begin on January 1.
“We are pleased that our continued business momentum and strong cash flow generation has enabled us to negotiate a significant reduction in annual interest expense," says Office Depot CEO Gerry Smith.
ODP +2.39% premarket to $3.00.
Source: Press Release
Subscribe for full text news in your inbox