Wesco sets talk in $2.83 billion two-part notes offering; pricing Friday

By Paul A. Harris

Portland, Ore., May 28 – Wesco Distribution Inc. set price talk in its $2.825 billion two-part offering of senior notes (B2/BB-/BB-) on Thursday, according to market sources.

The deal includes $1.825 billion of five-year notes, callable in two years at par plus 50% of the coupon, talked to yield 7 1/8% to 7 3/8%, which is tight to initial guidance in the mid 7% area.

Wesco is also selling $1 billion of eight-year notes, callable in three years at par plus 50% of the coupon, talked in the 7 5/8% area, which is tight to initial guidance in the high 7% area.

Books close on Thursday, except for accounts meeting with management Friday morning in Los Angeles.

The Rule 144A and Regulation S for life deal is set to price on Friday.

Joint bookrunner Barclays will bill and deliver. CIBC World Markets Corp., Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. are also joint bookrunners.

Citizens Capital Markets Inc., HSBC Securities (USA) Inc. and Scotia Capital (USA) Inc. are the co-managers.

The Pittsburgh-based company plans to use the proceeds to partially fund its acquisition of Anixter International Inc., as well as to fund the redemption of Anixter's notes.

Wesco supplies electrical, industrial, and communications MRO and OEM products, supplies construction materials and provides advanced supply chain management and logistics services.

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