By Cristal Cody
Tupelo, Miss., June 1 – Arrow Electronics, Inc. sold $500 million of 3.875% senior notes due Jan. 12, 2028 (Baa3/BBB-/BBB-) at 99.575 to yield 3.924%, or Treasuries plus 170 basis points, according to an FWP filing with the Securities and Exchange Commission on Thursday.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC were the bookrunners.
Proceeds will be used to repurchase a portion of the company’s $300 million outstanding 3% notes due 2018, $300 million outstanding of 6% notes due 2020, $250 million outstanding of 5.125% notes due 2021 and $200 million outstanding of 7.5% senior debentures due 2027 through a tender offer. The company also may use a portion of the proceeds to redeem the $200 million outstanding of 6.875% senior debentures due 2018 that it issued a notice of redemption for on May 22.
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.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 12, 2028
|
| Bookrunners: | Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC
|
| Coupon: | 3.875%
|
| Price: | 99.575
|
| Yield: | 3.924%
|
| Spread: | Treasuries plus 170 bps
|
| Call feature: | Make-whole call before Oct. 12, 2027 at Treasuries plus 25 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | June 1
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
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