Published on 2/27/2023 in the Prospect News Investment Grade Daily.
New Issue: Arrow Electronics prices $500 million 6.125% notes due 2026 at Treasuries plus 163 bps
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Feb. 27 – Arrow Electronics, Inc. priced $500 million of 6.125% three-year notes (Baa3/BBB-/BBB-) at 99.981 to yield 6.132%, or Treasuries plus 163 basis points, on Monday, according to an FWP filing with the Securities and Exchange Commission.
Price talk was in the Treasuries plus 190 bps area, a market source told Prospect News.
J.P. Morgan Securities LLC, ING Financial Markets LLC, Mizuho Securities USA LLC and PNC Capital Markets LLC are joint bookrunners.
Proceeds from the offering will be used to redeem all of the company’s $300 million 4.5% notes due March 1, 2023. Any remaining proceeds will be used for general corporate purposes, which may include acquisitions or the repayment of debt.
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.
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| Amount: | $500 million
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| Issue: | Notes
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| Maturity: | March 1, 2026
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| Bookrunners: | J.P. Morgan Securities LLC, ING Financial Markets LLC, Mizuho Securities USA LLC and PNC Capital Markets LLC
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| Co-managers: | BofA Securities, Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, Danske Markets Inc., Loop Capital Markets LLC, Santander US Capital Markets LLC and Standard Chartered Bank
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 6.125%
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| Price: | 99.981
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| Yield: | 6.132%
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| Spread: | Treasuries plus 163 bps
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| Call: | At par on or after March 1, 2024
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| Pricing date: | Feb. 27
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| Settlement date: | March 1
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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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| Price talk: | Treasuries plus 190 bps area
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| Cusip: | 04273WAD3
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