Published on 2/23/2015 in the Prospect News Investment Grade Daily.
New Issue: Arrow Electronics prices $700 million seven-, 10-year senior notes
By Aleesia Forni
Virginia Beach, Feb. 23 – Arrow Electronics, Inc. priced $700 million senior notes (Baa3/BBB-/) in seven-year and 10-year tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $350 million tranche of 3.5% notes due 2022 priced at 99.241 to yield 3.622%, or Treasuries plus 175 basis points.
There was also $350 million of 4% notes due 2025 sold with a spread of 205 bps over Treasuries. The notes priced at 99.031 to yield 4.118%.
Both tranches sold at the tight end of price talk.
BofA Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to refinance outstanding 3.375% notes due Nov. 1, 2015 and for other general corporate purposes.
The maker of electronic components and enterprise computing solutions is based in Melville, N.Y.
| Issuer: | Arrow Electronics Inc.
|
| Issue: | Senior notes
|
| Amount: | $700 million
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Mizuho Securities USA Inc., RBS Securities Inc., SMBC Nikko Securities America, Inc.
|
| Trade date: | Feb. 23
|
| Settlement date: | March 2
|
| Ratings: | Moody’s: Baa3
|
| Standard & Poor’s: BBB-
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $350 million
|
| Maturity: | April 1, 2022
|
| Coupon: | 3.5%
|
| Price: | 99.241
|
| Yield: | 3.622%
|
| Spread: | 175 bps
|
| Price talk: | 180 bps area, tightened from 200 bps to 212.5 bps
|
| Make-whole call: | 30 bps prior to Feb. 1, 2022, then callable at par
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | April 1, 2025
|
| Coupon: | 4%
|
| Price: | 99.031
|
| Yield: | 4.118%
|
| Spread: | 205 bps
|
| Price talk: | 210 bps area, tightened from 225 bps to 237.5 bps
|
| Make-whole call: | 35 bps prior to Jan. 1, 2025, then callable at par
|
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