Published on 5/4/2021 in the Prospect News Investment Grade Daily.
New Issue: Avnet sells $300 million 3% 10-year notes at Treasuries plus 150 bps
By Devika Patel and Cristal Cody
Knoxville, Tenn., May 4 – Avnet, Inc. priced $300 million of 3% 10-year senior notes (Baa3/BBB-/BBB-) on Tuesday at a spread of Treasuries plus 150 basis points, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.22 to yield 3.091%.
Initial price talk was in the 165 bps to 170 bps area over Treasuries.
BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to redeem the company’s $300 million of 3.75% notes and for general corporate purposes.
Avnet is a Phoenix-based distributor of electronic components, enterprise computer and storage products and IT solutions and services.
| Issuer: | Avnet, Inc.
|
| Amount: | $300 million
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| Description: | Senior notes
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| Maturity: | May 15, 2031
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Senior co-managers: | BNP Paribas Securities Corp., Mizuho Securities USA LLC, MUFG, Scotia Capital (USA) Inc. and Truist Securities, Inc.
|
| Junior co-managers: | Academy Securities, Inc., Commerz Markets LLC, HSBC Securities (USA) Inc., KBC Securities USA LLC, Loop Capital Markets LLC, PNC Capital Markets LLC, R. Seelaus & Co., LLC, Siebert Williams Shank & Co., LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, U.S. Bancorp Investments, Inc. and UniCredit Capital Markets LLC
|
| Coupon: | 3%
|
| Price: | 99.22
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| Yield: | 3.091%
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| Spread: | Treasuries plus 150 bps
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| Call: | Make-whole call at Treasuries plus 25 bps until Feb. 15, 2031, then a par call
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| Trade date: | May 4
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| Settlement date: | May 6
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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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| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 165 bps to 170 bps area
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