Fitch rates Avnet notes BBB-

Fitch Ratings said it assigned a BBB- rating to Avnet, Inc.'s offering of $300 million five-year senior unsecured notes.

The outlook is stable.

The proceeds will be used to refinance $215 million of debt assumed from the Premier Farnell acquisition and the remainder to be used to repay borrowings under the revolver, term loan or accounts receivable securitization program, Fitch said.

The new notes will rank pari passu with other senior unsecured indebtedness of Avnet, the agency said, and will contain an obligation to repurchase the notes at 101% upon change of control, consistent with the existing notes.

The proceeds from the pending sale of Avnet's Technology Solutions business to Tech Data Corp. will be used to reduce debt and lower leverage to less than 3x in the near term, Fitch said.

A deviation from this expectation would likely result in a downgrade, the agency said.

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