Avnet enters into $1 billion revolver at 'attractive terms,' CFO says

By Aleesia Forni

Columbus, Ohio, Nov. 22 - Avnet, Inc. closed a $1 billion five-year senior unsecured revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Pricing on this revolver ranges from Libor plus 97.5 basis points to 162.5 bps, depending on the company's debt rating.

Facility fees are also based on Avnet's rating and range from 15 bps to 37.5 bps.

The facility includes the issuance of up to $150 million of letters of credit.

This revolver may be increased to $1.25 billion and replaces the company's previous $500 million senior unsecured revolver.

The new credit facility is set to mature on Nov. 18, 2016.

Under this agreement, loans may be made in U.S. dollars, euros, pounds sterling, Australian dollars, Hong Kong dollars, Singapore dollars, Japanese Yen and other specified currencies.

Subsidiaries of Avnet may become borrowers, subject to certain conditions.

"With the significant growth in Avnet's business since we signed our previous credit facility, we determined this was an excellent time to expand our credit availability. This five-year facility significantly increases our liquidity at attractive terms and conditions and, together with our strong balance sheet, provides the financial flexibility to pursue our strategic growth objectives," chief financial officer Raymond Sadowski said in a press release to announce the new facility.

Bank of America Merrill Lynch, BNPP Securities Corp., the Bank of Nova Scotia, the Bank of Tokyo-Mitsubishi UFJ Ltd. and RBS Securities Inc. are joint lead arrangers and joint bookrunners.

Bank of America NA is administrative agent, swingline lender and letter of credit issuer.

The Royal Bank of Scotland plc, BNP Paribas, the Bank of Nova Scotia and the Bank of Tokyo-Mitsubishi UFJ Ltd. are syndication agents.

Avnet is a Phoenix-based distributor of electronic components, computer products and embedded technology.

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