Wesco plans new class of preferreds for proposed buyout of Anixter

By Wendy Van Sickle

Columbus, Ohio, Dec. 30 – Wesco International, Inc. plans to issue a new class of perpetual preferred stock as part of its consideration of its proposed purchase of Anixter International, according to a news release.

Wesco said it is offering to purchase the global distributor of network and security solutions, electrical and electronic solutions and utility power solutions for $93.50 per share in cash and stock, which amount includes $63.00 in cash, 0.2397 shares of Wesco common stock plus $16.65 of the new preferreds.

The perpetual preferred stock is expected to have a fixed market rate of about 9.25%, subject to reset and a five-year non-call feature and will be listed on the New York Stock Exchange.

Wesco submitted this revised proposal to acquire Anixter on Dec. 26.

Wesco said it has obtained fully committed debt financing from Barclays for the cash portion of the transaction.

Anixter said its board of directors will carefully review Wesco’s proposal in the context of Anixter’s existing agreement with Clayton, Dubilier & Rice, which has agreed to purchase Anixter for $82.50 per share in cash in a transaction valued at about $3.9 billion.

Wesco is a Pittsburgh-based provider of electrical, industrial and communications maintenance, repair and operating and original equipment manufacturer products, construction materials, and advanced supply chain management and logistic services.

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