DEERFIELD, Ill., Nov. 25, 2013 /PRNewswire/ -- United Stationers Inc. (NASDAQ: USTR) today announced that it has entered into an agreement to issue $150 million of senior secured notes to a group of investors. The sale of the notes is scheduled to close on January 15, 2014. The annual interest rate on the notes will be 3.75 percent and the notes will mature on January 15, 2021. The company intends to use the proceeds to retire $135 million of existing senior secured notes due October 2014, as well as to reduce bank borrowings.
At the time United Stationers priced the notes, it terminated a swap transaction it had entered into on June 11, 2013. Taking into account the gain realized on the termination of the swap, the effective per annum interest rate on the notes will be 3.66 percent.
"We are pleased to obtain long-term committed financing at such attractive rates. These notes represent an important diversification of our funding sources and allow us to convert a portion of our debt from floating to fixed, which reduces our exposure to rising interest rates," said Todd A. Shelton, senior vice president and chief financial officer.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and Wells Fargo Securities, LLC served as joint lead placement agents for the notes offering.Forward-Looking Statements This news release contains forward-looking statements concerning the company's private debt placement. These statements are based on management's current expectations and assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: prevailing economic conditions and changes affecting the business products industry and the general economy; United's reliance on key customers; the creditworthiness of United's customers; the risks and expense associated with United's obligations to maintain the security of private information provided by United's customers; the costs and risks related to compliance with laws, regulations and industry standards affecting United's business; and the effects of hurricanes, acts of terrorism and other natural or man-made disruptions; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements. Shareholders, potential investors and other readers are urged to consider these risks and uncertainties in evaluating forward-looking statements and are cautioned not to place undue reliance on the forward-looking statements. For additional information about risks and uncertainties that could materially affect United's results, please see the company's Securities and Exchange Commission filings. The forward-looking information in this news release is made as of this date only, and the company does not undertake to update any forward-looking statement. Investors are advised to consult any further disclosure by United regarding the matters discussed in this release in its filings with the Securities and Exchange Commission and in other written statements it makes from time to time. It is not possible to anticipate or foresee all risks and uncertainties, and investors should not consider any list of risks and uncertainties to be exhaustive or complete.
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