Published on 11/16/2021 in the Prospect News Investment Grade Daily.
New Issue: Arrow Electronics prices $500 million 2.95% notes due 2032 at Treasuries plus 135 bps
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Nov. 16 – Arrow Electronics, Inc. priced $500 million of 2.95% notes due Feb. 15, 2032 (Baa3/BBB-/BBB-) at 99.758 to yield 2.978%, or Treasuries plus 135 basis points, on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
Price talk was in the Treasuries plus 160 bps area, a market source told Prospect News.
The notes will have a make-whole call until Nov. 15, 2031 at Treasuries plus 25 bps and then a par call.
A change-of-control triggering event would result in an offer to purchase the notes at 101.
BofA Securities, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC and SMBC Nikko Securities America, Inc. are joint bookrunners.
Hogan Lovells US LLP is advising the issuer.
Proceeds from the offering will be used to redeem all of the company’s 3.5% notes due 2022. Any remaining proceeds will be used for general corporate purposes, which may include acquisitions or the repayment of debt.
Arrow Electronics is a Centennial, Colo.-based provider of products and services to industrial and commercial users of electronic components and enterprise computing solutions.
| Issuer: | Arrow Electronics, Inc.
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| Issue: | Notes
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| Amount: | $500 million
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| Maturity: | Feb. 15, 2032
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| Bookrunners: | BofA Securities, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC and SMBC Nikko Securities America, Inc.
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| Co-managers: | ING Financial Markets LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc., HSBC Securities (USA) Inc., PNC Capital Markets LLC, Truist Securities, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Danske Markets Inc., Loop Capital Markets LLC, Santander Investment Securities Inc. and Standard Chartered Bank
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| Coupon: | 2.95%
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| Price: | 99.758
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| Yield: | 2.978%
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| Spread: | Treasuries plus 135 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Nov. 15, 2031, then a par call
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| Pricing date: | Nov. 16
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| Settlement date: | Dec. 1
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Talk: | Treasuries plus 160 bps area
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| Cusip: | 04273WAC5
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