By Andrea Heisinger
New York, Oct. 29 - Arrow Electronics, Inc. priced $500 million of notes (Baa3/BBB-/BBB-) in two tranches by early afternoon Friday, a source away from the deal said.
The $250 million of 3.375% five-year notes sold at 99.65 to yield 3.452% with a spread of 230 basis points over Treasuries. The notes feature a make-whole call at 35 bps over Treasuries.
A $250 million tranche of 5.125% notes due March 2021 priced at 99.674 to yield 5.167% with a spread of Treasuries plus 255 bps.
The 10-year notes have a make-whole call of Treasuries plus 40 bps.
Both notes feature a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Morgan Stanley & Co. Inc.
Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the senior co-managers.
Co-managers were HSBC Securities (USA) Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc. and Standard Chartered Bank.
Proceeds are being used for general corporate purposes, including acquisitions and debt repayment under an $800 million revolving credit facility or $300 million asset securitization program.
The maker of electronic components and enterprise computing solutions is based in Melville, N.Y.
| Issuer: | Arrow Electronics, Inc.
|
| Issue: | Notes
|
| Amount: | $500 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley & Co. Inc.
|
| Senior co-managers: | Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC
|
| Co-managers: | HSBC Securities (USA) Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., Standard Chartered Bank
|
| Change-of-control put: | 101%
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 3
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $250 million
|
| Maturity: | Nov. 1, 2015
|
| Coupon: | 3.375%
|
| Price: | 99.65
|
| Yield: | 3.452%
|
| Spread: | Treasuries plus 230 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | March 1, 2021
|
| Coupon: | 5.125%
|
| Price: | 99.674
|
| Yield: | 5.167%
|
| Spread: | Treasuries plus 255 bps
|
| Call: | Make-whole at Treasuries plus 40 bps
|
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