Avnet prices $550M convertible debt offering

Avnet (NASDAQ:AVT) has priced its private offering of $550.0 million aggregate principal amount of 1.75% convertible senior notes due 2030, with an option to purchase up to an additional $100M.

The notes will bear interest at 1.75% per year and mature on September 1, 2030, unless earlier converted, redeemed, or repurchased. The initial conversion rate is 14.2313 shares of common stock per $1,000 principal amount of notes, which represents an initial conversion price of ~$70.27 per share of common stock.

Net proceeds are estimated to be around $535.3 million, or $632.8 million if the initial purchasers exercise their option to purchase additional notes in full.

The company intends to use around $100.0 million of the net proceeds to repurchase ~1.92 million shares of its common stock pursuant to its existing share repurchase program and the remaining proceeds to repay a portion of the amounts outstanding under its revolving credit facility.