AMENDMENT NO. 1 TO THE CREDIT AGREEMENT
Exhibit 99.1.1
AMENDMENT NO. 1 TO THE
CREDIT AGREEMENT
CREDIT AGREEMENT
Dated as of September 9, 2005
AMENDMENT NO. 1 TO THE CREDIT AGREEMENT among OFFICE DEPOT, INC., a Delaware corporation (the
“Borrower”), the banks, financial institutions and other institutional lenders parties to
the Credit Agreement referred to below (collectively, the “Lenders”) and WACHOVIA BANK,
NATIONAL ASSOCIATION, as agent (the “Agent”) for the Lenders.
PRELIMINARY STATEMENTS:
(1) The Borrower, the Lenders and the Agent have entered into a Credit Agreement dated as of
April 30, 2004 (the “Credit Agreement”). Capitalized terms not otherwise defined in this
Amendment have the same meanings as specified in the Credit Agreement.
(2) The Borrower and the Required Lenders have agreed to amend the Credit Agreement as
hereinafter set forth.
SECTION 1. Amendments to Credit Agreement. The Credit Agreement is, effective as of
the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2,
hereby amended by amending the definition of “EBITR” in Section 1.01 in full to read as
follows:
“EBITR” means, for any period, net income (or net loss) plus (y) the sum of (a)
net interest expense, (b) income tax expense, (c) rentals payable under leases of real or
personal, or mixed, property, (d) non-recurring, non-cash charges and (e) stock option
compensation expense resulting from the adoption of any amendments to Financial Accounting
Standards Board Statement No. 123, in each case determined in accordance with GAAP for such
period, provided that there shall be excluded from net income (or net loss) (i) any
items of gain or loss resulting from the sale of assets other than in the ordinary course of
business and (ii) the income (or loss) of any party accrued prior to the date such party
becomes a Subsidiary of the Borrower or is merged into or consolidated with the Borrower or
any of its Subsidiaries, or such party’s assets are acquired by the Borrower or any of its
Subsidiaries.
SECTION 2. Conditions of Effectiveness. This Amendment shall become effective as of
the date first above written when, and only when, the Agent shall have received counterparts of
this Amendment executed by the Borrower and the Required Lenders or, as to any of the Lenders,
advice satisfactory to the Agent that such Lender has executed this Amendment, and the consent
attached hereto executed by each Guarantor. This Amendment is subject to the provisions of Section
8.01 of the Credit Agreement.
SECTION 3. Representations and Warranties of the Borrower. The Borrower represents
and warrants as follows:
(a) Each Loan Party and their Material Subsidiaries (i) is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction of its
incorporation, (ii) is duly qualified and in good standing as a foreign corporation in each
other jurisdiction in which it own or leases property or in which the conduct of its
business requires it to so qualify or be licensed, except where the failure to be so
qualified would not have a Material Adverse Effect and (iii) has all requisite corporate
power and authority (including, without limitation, all governmental licenses, permits and
other approvals) to own or lease and operate its properties and to carry on its business as
now conducted as and proposed to be conducted.
(b) The execution, delivery and performance by the Borrower of this Amendment and the
Loan Documents, as amended hereby, to which it is or is to be a party are within the
Borrower’s corporate powers, have been duly authorized by all necessary corporate action and
do not and do not contravene (i) such Loan Party’s charter or by-laws or (ii) law or any
contractual restriction binding on or affecting any Loan Party, any of its Subsidiaries or
any of its properties.
(c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is required for the
due execution, delivery or performance by the Borrower of this Amendment or any of the Loan
Documents, as amended hereby, to which it is or is to be a party.
(d) This Amendment has been duly executed and delivered by the Borrower. This
Amendment and each of the other Loan Documents, as amended hereby, to which the Borrower is
a party are legal, valid and binding obligations of the Borrower, enforceable against the
Borrower in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting the rights of creditors
generally and subject to general principles of equity.
(e) The Consolidated balance sheet of the Borrower and its Subsidiaries as at December
25, 2004, and the related Consolidated statements of income and cash flows of the Borrower
and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of Deloitte &
Touche LLP, independent public accountants, and the Consolidated balance sheet of the
Borrower and its Subsidiaries as at June 25, 2005, and the related Consolidated statements
of income and cash flows of the Borrower and its Subsidiaries for the six months then ended,
duly certified by the chief financial officer of the
Borrower, copies of which have been furnished to each Lender, fairly present, subject,
in the case of said balance sheet as at June 25, 2005, and said statements of income and
cash flows for the six months then ended, to year-end audit adjustments, the Consolidated
financial condition of the Borrower and its Subsidiaries as at such dates and the
Consolidated results of the operations of the Borrower and its Subsidiaries for the periods
ended on such dates, all in accordance with generally accepted accounting principles
consistently applied. Since December 25, 2004, there has been no Material Adverse Change.
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(f) There is no pending or threatened action, suit, investigation, litigation or
proceeding, including, without limitation, any Environmental Action, affecting the Borrower
or any of its Subsidiaries before any court, governmental agency or arbitrator that (i)
could be reasonably likely to have a Material Adverse Effect (other than the Disclosed
Litigation) or (ii) purports to affect the legality, validity or enforceability of this
Amendment or any of the other Loan Documents, as amended hereby, and there has been no
adverse change in the status, or financial effect on the Borrower or any of its
Subsidiaries, of the Disclosed Litigation from that described on Schedule 3.01(b) to the
Credit Agreement.
SECTION 4. Reference to and Effect on the Loan Documents. (a) On and after the
effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”,
“hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference
in the Notes and each of the other Loan Documents to “the Credit Agreement”, “thereunder”,
“thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference
to the Credit Agreement, as amended by this Amendment.
(b) The Credit Agreement, the Notes and each of the other Loan Documents, as specifically
amended by this Amendment, are and shall continue to be in full force and effect and are hereby in
all respects ratified and confirmed.
(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under
any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
SECTION 5. Costs and Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Agent in connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and the other instruments and documents to be
delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for
the Agent) in accordance with the terms of Section 8.04 of the Credit Agreement.
SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute but one
and the same agreement. Delivery of an executed counterpart of a
signature page to this Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.
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SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.
OFFICE DEPOT, INC. |
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By /s/ | ||||
Title: | ||||
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Agent and as a Lender |
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By /s/ | ||||
Title: | ||||
SUNTRUST BANK |
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By /s/ | ||||
Title: | ||||
CITICORP USA, INC. |
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By /s/ | ||||
Title: | ||||
BANK OF AMERICA, N.A. |
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By /s/ | ||||
Title: | ||||
JPMORGAN CHASE BANK, N.A. |
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By /s/ | ||||
Title: | ||||
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BNP PARIBAS |
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By /s/ | ||||
Title: | ||||
By /s/ | ||||
Title: | ||||
FIFTH THIRD BANK |
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By /s/ | ||||
Title: | ||||
FORTIS CAPITAL CORP. |
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By /s/ | ||||
Title: | ||||
By /s/ | ||||
Title: | ||||
ROYAL BANK OF SCOTLAND PLC |
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By /s/ | ||||
Title: | ||||
XXXXX FARGO BANK, NATIONAL ASSOCIATION |
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By /s/ | ||||
Title: | ||||
By /s/ | ||||
Title: | ||||
THE BANK OF NOVA SCOTIA |
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By /s/ | ||||
Title: | ||||
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NATIONAL CITY BANK |
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By /s/ | ||||
Title: | ||||
XXXXXXX STREET COMMITMENT
CORPORATION (recourse only to assets of Xxxxxxx Street Commitment Corporation) |
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By /s/ | ||||
Title: | ||||
HIBERNIA BANK |
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By /s/ | ||||
Title: | ||||
UNION BANK OF CALIFORNIA, N.A. |
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By /s/ | ||||
Title: | ||||
SUMITOMO MITSUI BANKING CORP. |
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By /s/ | ||||
Title: | ||||
MIZUHO CORPORATE BANK, LTD. |
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By /s/ | ||||
Title: | ||||
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CONSENT
Dated as of September 12, 2005
The undersigned, each a Guarantor under the Guaranty dated as of April 30, 2004 (the
“Guaranty”) in favor of the Agent and the Lenders parties to the Credit Agreement referred
to in the foregoing Amendment, hereby consents to such Amendment and hereby confirms and agrees
that notwithstanding the effectiveness of such Amendment, the Guaranty is, and shall continue to
be, in full force and effect and is hereby ratified and confirmed in all respects, except that, on
and after the effectiveness of such Amendment, each reference in the Guaranty to the “Credit
Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the
Credit Agreement, as amended by such Amendment .
THE OFFICE CLUB, INC. |
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By /s/ | ||||
Title: | ||||
XXXXXXX OFFICE SUPPLIES, INC. |
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By /s/ | ||||
Title: | ||||
VIKING OFFICE PRODUCTS, INC. |
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By /s/ | ||||
Title: | ||||
OD OF TEXAS, INC. |
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By /s/ | ||||
Title: | ||||
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