Summary of STAPLES INC - Yahoo! Finance

Item 8.01. Other Events.

On March 27, 2009, Staples, Inc. ("Staples") issued $500 million aggregate principal amount of 7.750% senior notes due 2011 (the "Notes"), in a public offering pursuant to a registration statement on Form S-3 (File No. 333-155855) filed with the Securities and Exchange Commission. The sale of the Notes was made pursuant to the terms of an underwriting agreement (the "Underwriting Agreement"), dated March 24, 2009 with Barclays Capital Inc., Banc of America Securities LLC and HSBC Securities (USA) Inc., as representatives of the several underwriters named in the Underwriting Agreement. Staples received net proceeds, after underwriting fees and estimated expenses, of approximately $497.5 million.

The Notes were issued under an Indenture dated as of January 15, 2009 (the "Indenture") among Staples, the Subsidiary Guarantors (as defined below) and HSBC Bank USA, National Association, as trustee.

Staples' obligations under the Notes and the Indenture are unconditionally guaranteed on an unsecured unsubordinated basis by Staples the Office Superstore, LLC, Staples the Office Superstore East, Inc., Staples Contract & Commercial, Inc. and Staples the Office Superstore, Limited Partnership (collectively, the "Subsidiary Guarantors").

The Underwriting Agreement and the Indenture have been previously filed. The form of Note is filed as Exhibit 4.1 hereto.

In connection with the receipt of proceeds from the offering of the Notes described above, the total commitment amount under Staples' existing Credit Agreement, dated April 1, 2008 (the "Credit Agreement"), was reduced from $1,261 million to $761 million. As a result of the change, availability under Staples' commercial paper program was reduced from $2.0 billion to approximately $1.5 billion. The commercial paper program is backstopped by the Credit Agreement and Staples' existing $750 million revolving credit facility entered into in October 2006.