Avnet enters into $500 million credit facility

By Jennifer Chiou

New York, Sept. 28 - Avnet Inc. and certain subsidiaries entered into a five-year $500 million unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA was administrative agent on the deal. Banc of America Securities LLC and ABN Amro Inc. were joint lead arrangers, with Banc of America the book manager. Credit Suisse, Cayman Islands Branch, the Bank of Nova Scotia and BNP Paribas were co-documentation agents.

The facility has a $100 million accordion feature.

Up to $100 million will be available in the form of letters of credit.

The agreement expires on Sept. 26, 2012 and may be renewed at Avnet's election for two additional one-year terms.

The company said that proceeds will go towards general corporate purposes.

Loans may be denominated in dollars, British pounds, euros, Japanese yen and other specified currencies.

The loan will bear interest at Libor plus 42.5 basis points, based on credit ratings.

Avnet noted that it terminated its existing senior unsecured credit facility for the new agreement with more favorable terms.

Avnet is a Phoenix, Ariz., distributor of electronic components, enterprise network and computer equipment and embedded subsystems.

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