Avnet Announces Results of the Tender Offer for Its 8.00% Notes Due Nov. 15, 2006.PHOENIX -- Avnet Inc. (NYSE NYSE See: New York Stock Exchange : AVT AVT avian arginine vasotocin. See vasotocin. ) today announced that it has accepted for purchase $250 million principal amount of its 8.00% Notes due Nov. 15, 2006 (the "Notes") that were tendered in response to the company's tender offer for up to $250 million in principal amount of the $400 million outstanding principal amount of Notes. The tender offer expired at 5 p.m., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on Tuesday, Sept. 13, 2005. Avnet intends to use the proceeds from its recently completed issuance of $250 million in principal amount of 6.00% Notes due Sept. 1, 2015, together with cash on hand, to fund the purchase of the Notes in the tender offer and the payment of 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. and associated expenses. Payment of the aggregate purchase price, including accrued interest, is expected to be made promptly. The company will record a charge in its first fiscal quarter ending Oct. 1, 2005, of approximately $10.9 million pre-tax and $7.1 million after-tax, or $0.05 per diluted share, for the premium paid to investors who tendered their Notes and other expenses associated with the transaction, net of proceeds from the settlement of interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. the company had in place on the Notes prior to tender. Management does not expect the issuance of the 6.00% Notes and the tender of the 8.00% Notes to have a material impact on ongoing interest expense because of the interest rate swaps that were in place on the tendered Notes. The issuance of the 6.00% Notes has, however, effectively extended the maturities of some of the company's outstanding debt. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains certain "forward-looking statements." The forward-looking statements herein include words such as "will," "expect" and "intend," or words of similar effect. These statements are based on management's current expectations, and are subject to uncertainty and changes in factual circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. Additional Information Avnet enables success from the center of the technology industry, providing cost-effective services and solutions vital to a broad base of more than 100,000 customers and 300 suppliers. The company markets, distributes and adds value to a wide variety of electronic components, enterprise computer products and embedded Inserted into. See embedded system. subsystems. Through its premier market position, Avnet brings a breadth and depth of capabilities that help its trading partners accelerate growth and realize cost efficiencies. Avnet and the recently acquired Memec (closed July 5, 2005) generated combined revenue in excess of $13 billion in the past year through sales in approximately 70 countries. Visit Avnet's Investor Relations Investor relations The process by which the corporation communicates with its investors. Web site at www.ir.avnet.com or contact us at investorrelations@avnet.com. |
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