Wesco International begins exchange offer for 1.75%, 2.625% convertible senior debentures

By Jennifer Chiou

New York, July 27 - Wesco International, Inc. announced the start of an exchange offer for its outstanding 1.75% convertible senior debentures due 2026 and its 2.625% convertible senior debentures due 2025.

The Pittsburgh-based distributor of electrical construction products and supplies said it is offering to exchange $960 principal amount of its new 6% convertible senior debentures due 2029 for each $1,000 principal amount of the 1.75% debentures. It is offering $1,010 principal amount of the new 6% convertibles for each $1,000 principal amount of 2.625% debentures.

Wesco said it will issue $345 million maximum of the new securities. The offer is conditioned on the issue of at least $100 million of the 6% convertibles.

The company noted that it will also pay accrued interest.

Tenders for the 1.75% debentures will be accepted before the 2.625% debentures.

The offer ends at midnight ET on Aug. 21.

If the initial conversion price of the new 6% debentures is determined to be the minimum conversion price of $26.25 because the volume-weighted average price would result in an initial conversion price of less than $26.25, Wesco said it will extend the offer by two business days.

The initial conversion price of the 6% debentures will be equal to 125% of the average VWAP, with the floor of $26.25. The maximum initial conversion rate is 38.0952 shares per $1,000 principal amount.

Global Bondholder Services Corp. is the information agent (866 470-1500 or call collect 212 430-3774. The lead dealer managers are Goldman, Sachs & Co. (877 686-5059 or call collect 212 357-2992) and Barclays Capital Inc. (800 438-3242 or call collect 212 528-7581). The co-dealer managers for are Credit Suisse Securities (USA) LLC, Wells Fargo Securities, LLC, Robert W. Baird & Co. Inc. and Raymond James & Associates, Inc.

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