Wesco International to price $125 million 20-year convertibles on Thursday

By Rebecca Melvin

Princeton, N.J., Sept. 19 - Wesco International, Inc. said it plans to raise about $275 million through concurrent offerings of $125 million of 20-year convertible senior debentures and $150 million of 12-year senior subordinated notes.

Bookrunners for the convertible senior debentures are Goldman Sachs & Co. and Lehman Brothers.

Price talk for the Rule 144A deal was expected to be released Tuesday afternoon, according to a syndicate source. The convertibles are expected to price Thursday after the close.

There is a $25 million over-allotment option on the convertibles.

Upon conversion, Wesco International will pay cash and, if required, shares of Wesco International common stock.

The convertible debentures will be guaranteed on a senior subordinated basis by Wesco Distribution, and the senior subordinated notes due 2017, to be issued by Wesco Distribution, will be guaranteed by Wesco International on a senior basis.

Net proceeds from the offerings, along with borrowings under credit facilities and cash on hand, will be used to redeem all the remaining $199.7 million principal amount of Wesco Distribution's 9.125% senior subordinated notes due 2008 and to help finance Wesco Distribution's acquisition of Carlton-Bates Co., which was previously announced.

Wesco is a Pittsburgh-based provider of electrical construction products and electrical and industrial maintenance, repair and operating supplies.

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