Tech Data calls all of its 2.75% convertibles, announces put option

By Angela McDaniels

Tacoma, Wash., Nov. 16 - Tech Data Corp. will redeem all of its outstanding 2.75% convertible senior debentures due 2026 at par plus accrued interest on Dec. 20, according to a company news release.

The principal amount of convertibles outstanding is $350 million.

As a result of the company's notice of redemption, the debentures are convertible through midnight ET on Dec. 16.

For each $1,000 principal amount converted, holders will receive (a) a cash amount equal to the lesser of $1,000 and the conversion value plus (b) a number of shares of the company's common stock equal to the sum of the daily share amounts for each of the 10 consecutive trading days in the applicable conversion reference period.

The company's shares closed at $49.14 (Nasdaq: TECD) on Nov. 16.

The convertibles are putable at par through midnight ET on Dec. 14.

Any convertibles put back to the company will be purchased on Dec. 15, which is also the next interest payment date for the convertibles.

Tech Data is a wholesale distributor of technology products based in Clearwater, Fla.

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