OfficeMax 2009 Annual Report Download - page 75

Scheduled Debt Maturities
The scheduled payments of recourse debt, are as follows:
(thousands)
2010 ........................................................... $ 22,430
2011 ........................................................... 4,478
2012 ........................................................... 39,078
2013 ........................................................... 5,569
2014 ........................................................... 1,773
Thereafter ....................................................... 224,288
Total ........................................................... $ 297,616
All non-recourse debt is due in full in 2019.
Credit Agreements
Prior to July 2007, the Company sold, on a revolving basis, an undivided interest in a defined
pool of receivables while retaining a subordinated interest in a portion of the receivables. This
program was terminated on July 12, 2007, in connection with the Amended and Restated Loan and
Security Agreement discussed below.
On July 12, 2007, the Company entered into an Amended and Restated Loan and Security
Agreement (the ‘‘U.S. Credit Agreement’’) with a group of banks. The U.S. Credit Agreement
permits the Company to borrow up to a maximum of $700 million subject to a borrowing base
calculation that limits availability to a percentage of eligible accounts receivable plus a percentage
of the value of eligible inventory less certain reserves. The U.S. Credit Agreement may be increased
(up to a maximum of $800 million) at the Company’s request or reduced from time to time, in each
case according to the terms detailed in the U.S. Credit Agreement. Letters of credit, which may be
issued under the U.S. Credit Agreement up to a maximum of $250 million, reduce available
borrowing capacity. At December 26, 2009, the Company was in compliance with all covenants
under the U.S. Credit Agreement. The U.S. Credit Agreement expires on July 12, 2012.
Borrowings under the U.S. Credit Agreement bear interest at rates based on either the prime
rate or the London Interbank Offered Rate (‘‘LIBOR’’). Margins are applied to the applicable
borrowing rates and letter of credit fees under the U.S. Credit Agreement depending on the level of
average availability. Fees on letters of credit issued under the U.S. Credit Agreement were charged
at a weighted average rate of 0.875% during 2009. The Company is also charged an unused line
fee of 0.25% on the amount by which the maximum available credit exceeds the average daily
outstanding borrowings and letters of credit.
On September 30, 2009, Grand & Toy Limited, the Company’s wholly owned subsidiary in
Canada, entered into a Loan and Security Agreement (the ‘‘Canadian Credit Agreement’’) with a
group of banks. The Canadian Credit Agreement permits Grand & Toy Limited to borrow up to a
maximum of C$60 million subject to a borrowing base calculation that limits availability to a
percentage of eligible accounts receivable plus a percentage of the value of eligible inventory less
certain reserves. The Canadian Credit Agreement may be increased (up to a maximum of
C$80 million) at Grand & Toy Limited’s request or reduced from time to time, in each case
according to the terms detailed in the Canadian Credit Agreement. Letters of credit, which may be
issued under the Canadian Credit Agreement up to a maximum of C$10 million, reduce available
borrowing capacity under the Canadian Credit Agreement. At December 26, 2009, Grand & Toy
Limited was in compliance with all covenants under the Canadian Credit Agreement. The Canadian
Credit Agreement expires on July 12, 2012.
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