Avnet gets £707 million tranche A, $250 million tranche B bridge loans

By Marisa Wong

Morgantown, W.Va., July 28 – Avnet, Inc. entered into a senior unsecured bridge credit agreement on July 27 for a single borrowing of up to £557 million of 364-day tranche A-1 bridge loans, up to $250 million of 364-day tranche B bridge loans and up to £150 million of 90-day tranche A-2 bridge loans.

Bank of America, NA is the administrative agent, and Bank of America Merrill Lynch is the lead arranger bookrunner.

Obligations of the lenders to fund loans under the bridge credit agreement expire on Feb. 27, 2017, according to an 8-K filing with the Securities and Exchange Commission.

Borrowings will bear interest at Libor plus an applicable margin based on the company’s long-term senior debt rating. The applicable margin ranges from 125 basis points to 250 bps initially, stepping up to 150 bps to 300 bps after 90 days, to 175 bps to 350 bps after 180 days and to 200 bps to 400 bps after 270 days.

Loan proceeds will be used finance the company’s planned acquisition of Premier Farnell plc. The all-cash transaction is valued at about £691 million.

Avnet is a Phoenix-based distributor of electronic components, enterprise computer and storage products and IT solutions and services. Premier Farnell is a Leeds, United Kingdom-based distributor of electronic components.

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