AVNET TO CALL ITS 6% CONVERTIBLE SUBORDINATED DEBENTURES.GREAT NECK, N.Y.--(BUSINESS WIRE)--August 8, 1995--Avnet Inc. (NYSE NYSE See: New York Stock Exchange :AVT AVT avian arginine vasotocin. See vasotocin. ) announced today it will call for redemption on September 15, 1995 all of Avnet's outstanding 6% Convertible Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before Due 2012 at the redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. of 101.2% of their principal amount, together with accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . Currently, the aggregate principal amount outstanding of the 6% Debentures is $105,263,000. Notice of Redemption will be sent to all holders of record by The First National Bank of Chicago, the trustee for the 6% Debentures. Holders have the right to convert the 6% Debentures at any time prior to the close of business on August 31, 1995 into shares of the Common Stock of Avnet at a conversion price of $43.00 principal amount per share. It should be noted that the value a holder of the 6% Debentures would receive on redemption is the equivalent of approximately $44.58 per common share, determined by dividing the amount to be received on redemption of $1,037.00 for each $1,000.00 of principal ($1,012.00 redemption price plus accrued interest of $25.00) by 23.26, the number of shares to be received for each $1,000.00 principal surrendered for conversion (the value of any fractional shares being paid in cash). Considering that the closing price of a share of Avnet Common Stock as reported for New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. Composite Transactions on August 7, 1995 was $52.25, holders of the Debentures are advised to convert. No payment or adjustment in respect of interest or dividends will be made upon the conversion of Debentures. However, Avnet's Board of Directors declared a dividend of $0.15 per common share payable October 2, 1995 to shareholders of record on September 15, 1995. Were a Debentureholder to convert into common shares on or prior to the August 31, 1995 deadline, such holder would, therefore, be entitled to such dividend provided that such shares are still held at the September 15, 1995 dividend record date. The First National Bank of Chicago will also act as conversion agent. The First National Bank of Chicago is located at the following mailing address: The First National Bank of Chicago Registered Bond Processing Unit One First National Plaza -- Suite 0124 Chicago, IL 60670-0124 or by hand at the following locations: First Chicago Trust Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 14 Wall Street -- 8th Floor, Window 2, New York, NY 10005 or The First National Bank of Chicago Registered Bond Processing Unit One North State Street -- 9th Floor Chicago, IL 60602 CONTACT: Avnet Inc. Stephanie A. Wagoner Raymond Sadowski 516/466-7000 (phone) 516/466-1203, 1204 (fax) |
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