Fitch rates Arrow Electronics notes BBB-

Fitch Ratings said it assigned a BBB- rating to Arrow Electronics, Inc.'s $500 million 10-year senior unsecured note offering.

The proceeds will be used funding up to a maximum of $285 million of the announced cash tender offer, redemption of $200 million of 6.875% notes due 2018 and for general corporate purposes, Fitch said.

As of April 1, Arrow's total debt outstanding was $2.9 billion, the agency noted.

Arrow announced a cash tender offer for up to a maximum aggregate consideration of $285 million for its 7.5% senior debentures due 2027, 6% notes due 2020, 5.125% notes due 2021 and 3% notes due 2018.

The ratings reflect the company's market leadership and scale as a leading enterprise computing and components distributor, Moody's said.

Arrow offers customers and suppliers a global footprint that optimizes logistics and connects suppliers with fragmented distribution channels, the agency said.

Fitch said it believes Arrow will sustain a leadership position due to its broad product portfolio and scale that is not easily replicated without significant and sustained investments.

The ratings are constrained by the weak position of the company's supply chain, the agency said.

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