S&P rates Arrow Electronics notes BBB-

S&P said it assigned a BBB- rating to Arrow Electronics Inc.'s proposed unsecured senior notes due 2028.

The rating is the same as the ratings on the company's existing senior unsecured notes.

The proceeds will be used to redeem all of the $200 million 6.875% notes due 2018 and tender for portions of the outstanding senior unsecured notes, including the 3% notes due 2018, 6% notes due 2020, 5.125% notes due 2021 and 7.5% notes due 2027.

The total principal amount of these notes was $1.05 billion as of April 1, S&P said.

The offering does not affect the company's BBB- corporate credit rating, the agency said.

While the total amount to be tendered has not been determined, S&P said it expects the transaction will not have a material impact on the company's pro forma leverage.

The ratings also reflect the company's position as one of the largest global technology products distributors, good free operating cash flow generation and countercyclical working capital requirements, the agency said.

The company's low margin, industry cyclicality and ongoing shareholder returns somewhat offset those factors, S&P added.

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