Tech Data exchanges 97.2% of 2% convertibles

New York, Dec. 15 - Tech Data Corp. said holders tendered $281.9 million principal amount or 97.2% of its $290 million of 2% convertible subordinated debentures due 2021 in its exchange offer for the securities.

As announced on Nov. 16, Tech Data carried out the exchange in response to new accounting regulations.

On conversion the new securities will pay cash up to the principal amount and the remainder in common stock. The existing debentures convert into cash, stock or a combination.

Any puts of the new convertibles will be paid in cash only.

The new convertibles will also have additional rights on a change of control, dividend protection through a conversion ratio adjustment and contingent interest of 15 basis points. Contingent interest on the existing debentures is either 15 basis points or linked to dividend payments.

Otherwise the new convertibles are identical to the old.

The Clearwater, Fla., provider of information technology and logistics said it is carrying out the offer in response to new accounting rules that will require it to treat the existing convertibles as if they were fully exchanged for stock when calculating diluted earnings per share.

The exchange expired at midnight ET on Dec. 14.

No exchange fee is payable.

Banc of America Securities LLC is the dealer manager (contact Equity-Linked Liability Management at 888 583-8900, x2200 or 212 933-2200) and Georgeson Shareholder Communications Inc. is the information agent (866 873-6991, banks and brokerages call 212 440-9800).

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