S&P: Arrow unaffected by offering

Standard & Poor's said Tuesday that the proposed offering by Arrow Electronics Inc. (BBB-/negative/A-3) of 12 million shares of common stock would not affect its ratings or outlook on the company.

S&P said Arrow is expected to use the majority of the approximately $300 million in proceeds to reduce outstanding debt. However, pro forma net debt (adjusted for capitalized operating leases and expected debt reductions) to EBITDA - at about 4x - remains high for the rating level.

Continued improvements in operating profitability, combined with additional debt reductions could lead to a stable outlook for Arrow over the near to intermediate term. S&P said the current rating incorporates the expectation that earnings and debt protection metrics will continue to improve on a year-over-year basis.

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