By Cristal Cody
Chicago, July 30 – Synnex Corp. sold $2.5 billion of notes in four tranches on Thursday, according to an 8-K filing with the Securities and Exchange Commission and details from a market source.
The company sold:
• $700 million of 1.25% three-year senior notes with a Treasuries plus 90 basis points spread, low to initial price talk in the Treasuries plus 110 bps area;
• $700 million of 1.75% five-year senior notes with a Treasuries plus 110 bps spread, low to initial price talk in the Treasuries plus 130 bps area;
• $600 million of 2.375% seven-year senior notes with a Treasuries plus 135 bps spread, low to initial price talk in the Treasuries plus 150 bps area; and
• $500 million of 2.65% 10-year senior notes with a Treasuries plus 145 bps spread, low to initial price talk in the Treasuries plus 170 bps area.
BofA Securities Inc., Citigroup Global Markets Inc. and MUFG are listed as active bookrunners.
HSBC Securities (USA) Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC are passive bookrunners for the Rule 144A and Regulation S transaction.
Proceeds will be used to finance the acquisition of Tiger Parent (AP) Corp., the indirect parent entity of Tech Data Corp.
Synnex plans to fund the acquisition with the new notes, a new $1.5 billion term loan facility and cash. The financing also includes a $500 million equity contribution to be made prior to the merger by an affiliate of Apollo Global Management, Inc.
If the merger has not closed by Dec. 22, 2021, the company will redeem all of the notes at 101. There is the possibility of an extended deadline with the final deadline which cannot be extended as June 22, 2022.
Synnex is a Fremont, Calif.-based business process services company. Tech Data is a Clearwater, Fla.-based technology distributor.
| Issuer: | Synnex Corp.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Active bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc. and MUFG
|
| Passive bookrunners: | HSBC Securities (USA) Inc., Scotia Capital (USA) Inc. and Wells Fargo Securities LLC
|
| Trade date: | July 29
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Notes due 2024
|
| Amount: | $700 million
|
| Maturity: | Aug. 9, 2024
|
| Coupon: | 1.25%
|
| Spread: | Treasuries plus 90 bps
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| Notes due 2026
|
| Amount: | $700 million
|
| Maturity: | Aug. 9, 2026
|
| Coupon: | 1.75%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 130 bps area
|
|
|
| Notes due 2028
|
| Amount: | $600 million
|
| Maturity: | Aug. 9, 2028
|
| Coupon: | 2.375%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 150 bps area
|
|
|
| Notes due 2031
|
| Amount: | $500 million
|
| Maturity: | Aug. 9, 2031
|
| Coupon: | 2.65%
|
| Spread: | Treasuries plus 145 bps
|
| Price talk: | Treasuries plus 170 bps area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
