Staples raises $500M

Boston Staples has issued $500 million in senior debt earlier this week to help pay down an existing credit agreement and boost its existing commercial paper agreement.

The moves are expected to boost Staples' flexibility and liquidity in growing its operations.

The offering was underwritten by Barclays Capital, Banc of America Securities and  HSBC Securities.

Having raised $497 million, after accounting for underwriting fees, in the debt offering, Staples said it will retire roughly half of its existing credit agreement with Barclays Bank from $1.26 billion to $761 million.

In turn, Staples has expanded its commercial paper program to $1.5 billion. The program is backed by an existing $750 million line of credit.