The merger agreement between Staples and Office Depot has been terminated. As a result, Office Depot will receive a cash payment from Staples of $250 million on May 19, 2016.

Simultaneously, Office Depot has successfully extended its asset-based credit facility for an additional five years. The new $1.2 billion facility will mature on May 13, 2021. The amended credit agreement reduces the overall fees and applicable spread on borrowing and modifies certain covenants to provide additional flexibility for incremental indebtedness, acquisitions, asset sales and restricted payments.

JPMorgan Chase, London branch, acted as European administrative agent and European collateral agent. JPMorgan Chase, North America acted as administrative agent and U.S. collateral agent. Wells Fargo and Bank of America acted as syndication agents. US Bank, Fifth Third Bank, Suntrust and NYCB Specialty Finance acted as documentation agents. JPMorgan Chase and Wells Fargo were joint lead arrangers and joint bookrunners.

Additionally, the company is analyzing various capital structure and shareholder return alternatives and has engaged Bain & Company to assist with finalizing a comprehensive strategic review of its business.

Office Depot Chairman and CEO Roland Smith said, “The continued realization of synergies from the merger with OfficeMax has provided the company with a significantly improved financial profile, including a strong liquidity position and the ability to generate future cash flow as merger related expenditures abate over time. The extension of our credit facility provides us with substantial flexibility as we look to enhance shareholder value going forward.”