Business Context and Reporting Period
Company: Avnet, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: October 13, 2005
Event: Entry into a Material Definitive Agreement (Amended and Restated Credit Agreement).
Key Financial Metrics
This filing details a new financing arrangement rather than reporting operational performance metrics such as revenue or profit.
- Facility Size: $500 million unsecured revolving credit facility.
- Accordion Feature: Option to increase capacity by $50 million (up to $550 million total).
- Letters of Credit: Up to $100 million available.
- Term: Five years, expiring October 13, 2010.
- Interest Rate: LIBOR plus an applicable margin of 0.80% per annum (based on current debt ratings) or an alternate base rate.
- Currencies: Loans available in U.S. Dollars, British Pounds Sterling, Euros, Japanese Yen, and other specified currencies.
Material Changes
On October 13, 2005, Avnet and certain subsidiaries entered into an amended and restated credit agreement, replacing or modifying prior financing terms. The agreement includes an Amended and Restated Guaranty by Avnet for the obligations of its subsidiary borrowers. The filing does not provide comparative financial data against prior periods as it is a transactional report.
Guidance, Risks, and Covenants
Use of Proceeds: General corporate purposes.
Covenants: The agreement restricts Avnet's ability to incur additional debt, incur liens, merge or consolidate, and limits dividends or distributions to stockholders. Compliance with specific financial ratios and tests is required.
Events of Default: Include failure to pay principal or interest, breach of representations, insolvency, change in control, and cross-defaults to other indebtedness.
Management Commentary: The filing references a press release issued on October 14, 2005, regarding the agreement but does not contain additional forward-looking guidance within the text provided.
Investor Verification Checklist
- Verify the full text of the Amended and Restated Credit Agreement (Exhibit 10.1) for specific financial ratio thresholds.
- Confirm Avnet's current long-term unsecured senior debt ratings from Moody's and S&P to validate the 0.80% applicable margin.
- Review the press release (Exhibit 99.1) for any additional strategic context regarding the refinancing.
- Monitor future filings for any utilization of the $50 million accordion feature.