(Updates with upsized offering and new pricing details, updates
stock quote)
DOW JONES NEWSWIRES
Arrow Electronics Inc. (ARW) raised the size of its planned note
sale to $300 million as it disclosed that the notes will mature in
2020 and yield 6%.
The debt is being sold to pay for a tender offer for $200
million of its 9.15% senior notes that mature next year.
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.
Shares closed Wednesday at $29.44 and were inactive after hours.
The stock is up 56% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com