Investors are threatening not to fund a US$2.75bn loan backing office supply retailer staples' purchase of rival Office Depot after pricing moved against the deal. This could delay the completion of an acquisition already challenged by antitrust issues. Banks committed to the financing, which includes the US$2.75bn term loan and a US$3bn revolver, in February 2015. When the deal was unable to be completed in a timely manner, that commitment was extended to February 4 from November 4 2015 after the Federal Trade Commission (FTC) raised antitrust concerns. Market conditions have deteriorated since the deal was put in place and loan pricing has increased significantly in the interim, which is leading some investors to call for higher pricing. The issue highlights the risk of committing to fund loans in advance of deals closing in volatile markets, sources said.
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