The Sycamore Partners-backed company has encouraged lenders with its post-Covid recovery, as efforts to grow sales and reduce leverage raised expectations that the company would look to tackle its upcoming debt maturities.

Staples has a $300m term loan B due September 2024, which is quoted at par. It then faces a $4bn maturity wall in April 2026, consisting of a $2bn 7.5% SSN and $2bn TLB that carries a 500bps coupon. Both are quoted around 99.

The company previously telegraphed a near-term refinancing of its 2024 term loan. But the size and structure of any deal remains fluid, sources said.

The company also has $1bn of 10.75% SUNs due 2027. That bond is quoted around 96 cents on the dollar, up from a low of 55 in November 2023, as weak demand and high costs weighed on its outlook at the time.

JP Morgan and Sycamore Partners declined to comment. Morgan Stanley and Staples did not respond to requests for comment.

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