OfficeMax 2009 Annual Report Download - page 76

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Borrowings and availability under the Company’s credit agreements for 2009 and 2008 were as
follows:
2009 2008
U.S. Canadian U.S.
Credit Credit Credit
Agreement Agreement Total Agreement
(millions)
Maximum aggregate available borrowing amount $534.4 $39.7 $574.1 $613.6
Less: Stand-by letters of credit ............. (61.1) — (61.1) (66.7)
Amount available for borrowing at fiscal
year-end ............................ $473.3 $39.7 $513.0 $546.9
Maximum borrowings outstanding during fiscal
year ............................... $ — $ — $ — $ —
Note Agreements
The indentures related to the 6.50% senior notes due in 2010 and 7.00% senior notes due in
2013 contained a number of restrictive covenants, substantially all of which have since been
eliminated and replaced with covenants contained in the Company’s other public debt. In
November 2008, we repurchased all of the outstanding 7.00% senior notes using proceeds from
pledged instruments that matured in October 2008, which had been reported as restricted
investments in the Consolidated Balance Sheets.
Other
At the end of the fiscal year 2009, Grupo OfficeMax, our 51%-owned joint venture in Mexico,
had total outstanding borrowings of $16.7 million. This included $9.9 million under an installment
loan agreement which is due in 60 monthly payments that started in the second quarter of 2009. In
the third quarter of 2009, Grupo OfficeMax entered into a second installment loan agreement for
$6.2 million due in 54 monthly payments beginning in the second quarter of 2010. The remaining
$0.6 million of borrowings is a simple revolving loan. There is no recourse against the Company on
the Grupo OfficeMax loans. The $6.2 million installment loan is secured by certain owned property
of Grupo OfficeMax. All other Grupo OfficeMax loan facilities are unsecured.
We have various unsecured debt outstanding, including approximately $189.9 million of
industrial revenue bonds due in varying amounts through 2029. At December 27, 2008,
approximately $69.2 million of these obligations were the subject of a preliminary potential adverse
determination regarding the deductibility of interest on the bonds from the Internal Revenue Service
(‘‘IRS’’). In the fourth quarter of 2009, the IRS conceded the position. The bonds are expected to be
held to their full maturity and continue to be classified as long-term debt in the Consolidated
Balance Sheets at December 26, 2009.
Cash Paid for Interest
Cash payments for interest, net of interest capitalized and including interest payments related
to the timber securitization notes, were $71.8 million in 2009, $90.0 million in 2008 and
$116.6 million in 2007.
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