Published on 5/12/2022 in the Prospect News Investment Grade Daily.
New Issue: Avnet prices $300 million 5.5% notes due 2032 with 265 bps spread
By Marisa Wong
Los Angeles, May 12 – Avnet, Inc. priced $300 million of 5.5% senior notes due June 1, 2032 (Baa3/BBB-/BBB-) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.991 to yield 5.501%, or a spread of 265 basis points over Treasuries.
The notes feature a make-whole call and then a par call.
BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used to redeem the company’s $350 million of 4.875% notes and for general corporate purposes.
Avnet is a Phoenix-based distributor of electronic components, enterprise computer and storage products and IT solutions and services.
| Issuer: | Avnet, Inc.
|
| Amount: | $300 million
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| Issue: | Senior notes
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| Maturity: | June 1, 2032
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| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG and Scotia Capital (USA) Inc.
|
| Senior co-managers: | SMBC Nikko Securities America, Inc., Truist Securities, Inc. and Wells Fargo Securities, LLC
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| Junior co-managers: | Academy Securities, Inc., Commerz Markets LLC, HSBC Securities (USA) Inc., KBC Securities USA LLC, PNC Capital Markets LLC, Siebert Williams Shank & Co., LLC, Standard Chartered Bank, U.S. Bancorp Investments, Inc. and UniCredit Capital Markets LLC
|
| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | In-house counsel and Covington & Burling LLP
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 5.5%
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| Price: | 99.991
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| Yield: | 5.501%
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| Spread: | Treasuries plus 265 bps
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| Call options: | Make-whole call at Treasures plus 40 bps until March 1, 2032; par call after that
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| Pricing date: | May 12
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| Settlement date: | May 23
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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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| Distribution: | SEC registered
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| Cusip: | 053807AV5
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