Tech Data borrows from $1 billion term loan for Avnet acquisition

By Tali Rackner

Norfolk, Va., Feb. 27 – Tech Data Corp. used borrowings under its $1 billion term loan credit agreement to help fund its acquisition of all shares of AVT Technology Solutions LLC and TS DivestCo BV, which together hold all assets and liabilities primarily relating to the technology solutions business of Avnet, Inc., according to an 8-K filing with the Securities and Exchange Commission.

In consideration for the acquisition, Tech Data issued 2,785,402 shares of its common stock, representing about 7.3% of Tech Data’s outstanding common stock after giving effect to the issuance of the new shares in connection with the acquisition.

To fund the roughly $2.4 billion acquisition, the company also used amounts received from the offering of its $500 million 3.7% senior notes due 2022 and $500 million 4.95% senior notes due 2027, drawings under other credit facilities and cash on hand, the filing said.

Tech Data is a technology products distribution company based in Clearwater, Fla. Avnet is a Phoenix-based distributor of electronic components, enterprise computer, networking and storage products and software, IT solutions and services and embedded subsystems.

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