DOW JONES NEWSWIRES
Arrow Electronics Inc. (ARW) plans a tender offer for $200
million of its 9.15% senior notes that mature next year, and they
plan to sell $250 million in debt to pay for the deal.
The distributor of semiconductor products to computers and
electronics makers has rushed to cut costs to keep up with
declining sales in recent quarters. Though chip demand has started
to improve and prices are recovering as manufacturers cut output,
some analysts say the growth is mostly due to inventory
corrections.
Arrow will pay $1,077.50 per $1,000 face value of the notes in
the offering, set to expire at 11:59 p.m. EDT Tuesday, Sept. 29.
The company also will pay accrued and unpaid interest. Many
companies have been selling new debt to pay off borrowings coming
due in the near term.
The tender offer is tied to the completion of the sale of at
least $250 million in senior notes.
Shares were up 1.5% at $29.84 in recent trading. The stock is up
59% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com