S&P assigns BBB- to Arrow notes

S&P said it assigned a BBB- rating to Arrow Electronics Inc.’s planned senior unsecured notes due 2026 with the final amount to be determined.

“All of our other ratings on Arrow, including our BBB- issuer credit rating and stable outlook, are unchanged,” the agency said in a statement.

Arrow plans to use the proceeds primarily to repay all of the outstanding principal on its 4.5% notes due March 2023 and pay transaction-related fees and expenses.

“We also assume it will apply any remaining net proceeds for general corporate purposes, which may include repaying other debt; investing in short-term interest-bearing accounts, securities, or similar investments; and–to a lesser extent–funding shareholder returns and acquisitions,” the agency added.

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