Avnet announces put option on Bell Microproducts' 3.75% convertibles

By Susanna Moon

Chicago, July 16 - Avnet, Inc. said holders may put its wholly owned subsidiary Bell Microproducts, Inc.'s 3.75% convertible subordinated notes due 2024 and 3.75% series B convertible subordinated notes due 2024.

Avnet said the notes are putable because a change of control occurred on July 6 as a result of the merger between Avnet and Bell.

Holders may require Bell to purchase the notes on Aug. 31 at par plus any accrued interest.

The principal amount of the notes is $110 million.

Wells Fargo Bank, NA is the paying agent.

Avnet's chief financial officer said on March 29 that it would "in all likelihood" retire all of Bell Microproducts Inc.'s outstanding debt as quickly as possible after closing on its acquisition of the company. Ray Sadowski made the comment during a company conference call.

Avnet is a Phoenix distributor of electronic components, enterprise network and computer equipment and embedded subsystems.

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