United Stationers Supply Company distributes business products, technology products, and janitorial and sanitation products for manufacturers and retailers in North America. It offers stationery and office supplies, drafting supplies, office equipment, furniture, computer peripherals, printing and writing paper, and food service supplies. The company, formerly known as Utility Supply Co., was incorporated in 1922 and is based in Deerfield, Illinois with a facility in Walker, Michigan. United Stationers Supply Company operates as a subsidiary of United Stationers, Inc.
One Parkway North Boulevard
Deerfield, IL 60015-2559
Founded in 1922
United Stationers Inc. and United Stationers Supply Company Enter into Third Amended and Restated Five-Year Revolving Credit Agreement with JPMorgan Chase Bank, National Association and Lenders
Sep 29 11
On September 21, 2011, United Stationers Inc. and its subsidiary, United Stationers Supply Company ('USSC'), entered into a Third Amended and Restated Five-Year Revolving Credit Agreement with JPMorgan Chase Bank, National Association, as Administrative Agent, and the lenders identified therein. The Amended Agreement modifies the Second Amended and Restated Five-Year Revolving Credit Agreement entered into on July 5, 2007, as amended on December 21, 2007. The Amended Agreement provides for a revolving credit facility with an aggregate committed principal amount of $700 million. The Amended Agreement also provides for the issuance of letters of credit. The committed principal amount of $700 million represents an increase of $75 million over the aggregate commitment under the Prior Agreement, which consisted of a $425 million revolving credit facility and a $200 million term loan. Subject to the terms and conditions of the Amended Agreement, USSC may seek additional commitments to increase the aggregate committed principal amount to a total amount of $1 billion, a $375 million increase over the maximum under the Prior Agreement. Amounts borrowed under the Amended Agreement are secured by substantially all of the company's assets, other than real property and certain accounts receivable. Borrowings under the Amended Agreement will bear interest at LIBOR for specified interest periods or at the Alternate Base Rate, plus, in each case, a margin determined based on the company's permitted debt to EBITDA ratio. Depending on the company's Leverage Ratio, the margin on LIBOR-based loans ranges from 1.00% to 2.00% and on Alternate Base Rate loans ranges from 0.00% to 1.00%. Based on the company's current Leverage Ratio, the applicable margin for LIBOR-based loans would be 1.25% and for Alternate Base Rate loans would be 0.25%. In addition, the company is required to pay the lenders a fee on the unutilized portion of the commitments under the Amended Agreement at a rate per annum between 0.15% and 0.325%, depending on the company's Leverage Ratio. The Amended Agreement contains representations and warranties, covenants and events of default that are customary for facilities of this type. In addition to increasing the aggregate commitments, the Amended Agreement also provides the company greater financial flexibility than the Prior Agreement: The Amended Agreement increases the maximum permitted Leverage Ratio to 3.50 to 1.00 (compared to 3.25 to 1.00 under the Prior Agreement). The Amended Agreement eliminates restrictions on the company's ability to repurchase stock or pay dividends when its Leverage Ratio is less than or equal to 3.00 to 1.00 (compared to 2.75 to 1.00 under the Prior Agreement); when the ratio is greater than 3.00 to 1.00, the Amended Agreement permits the Company to repurchase its stock and/or issue dividends in an aggregate amount not to exceed the Maximum Payment Amount. Subject to the terms and conditions of the Amended Agreement, the Amended Agreement permits the company to incur up to $300 million of indebtedness in addition to borrowings under the Amended Agreement, plus up to $200 million under the company's asset-backed securitization program and up to $135 million in replacement or refinancing of the company's floating rate senior secured notes due October 15, 2014. The revolving credit facility under the Amended Agreement matures on September 21, 2016, compared to July 5, 2012 under the Prior Agreement.