Avnet 2008 Annual Report Download - page 61

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Long-term debt consists of the following:
During the first quarter of fiscal 2008, the Company entered into a five-year $500,000,000 unsecured revolving
credit facility (the “Credit Agreement”) with a syndicate of banks which expires in September 2012. In connection
with the Credit Agreement, the Company terminated its existing unsecured $500,000,000 credit facility (the “2005
Credit Facility”) which was to expire in October 2010. Under the Credit Agreement, the Company may select from
various interest rate options, currencies and maturities. The Credit Agreement contains certain covenants, all of
which the Company was in compliance with as of June 28, 2008. As of the end of fiscal 2008, there were
$19,689,000 in borrowings outstanding under the Credit Agreement included in “other long-term debt” in the
preceding table. In addition, there were $24,264,000 in letters of credit issued under the Credit Agreement which
represent a utilization of the Credit Agreement capacity but are not recorded in the consolidated balance sheet as the
letters of credit are not debt. At June 30, 2007, there were no borrowings outstanding under the 2005 Credit Facility
and $21,152,000 in letters of credit were issued under the 2005 Credit Facility.
During March 2007, the Company issued $300,000,000 of 5.875% Notes due March 15, 2014. The proceeds
from the offering, net of discount and underwriting fees, were $297,084,000, and were used to repay amounts
outstanding under the 2005 Credit Facility and the Program. The borrowings under the 2005 Credit Facility and the
Program were used to fund the acquisition of Access in fiscal 2007.
During October 2006, the Company redeemed all of its 9
3
/ 4 % Notes due February 15, 2008 (the “9
3
/ 4
% Notes”),
of which $361,360,000 was outstanding. The Company used the net proceeds amounting to $296,085,000
from the issuance in September 2006 of $300,000,000 principal amount of 6.625% Notes due September 15, 2016,
plus available liquidity, to repurchase the 9
3
/ 4
% Notes. In connection with the repurchase, the Company terminated
two interest rate swaps with a total notional amount of $200,000,000 that hedged a portion of the 9
3
/ 4 % Notes.
Debt extinguishment costs incurred in fiscal 2007 as a result of the redemption totaled $27,358,000 pre-tax,
$16,538,000 after tax, or $0.11 per share on a diluted basis, and consisted of $20,322,000 for a make-whole
redemption premium, $4,939,000 associated with the two interest rate swap terminations, and $2,097,000 to write-
off
certain deferred financing costs.
During November 2006, the Company repaid the remaining $143,675,000 of the 8.00% Notes due
November 15, 2006 (the
“8.00% Notes”) on the maturity date.
In August 2005, the Company issued $250,000,000 of 6.00% Notes due September 1, 2015. The proceeds from
the offering, net of discount and underwriting fees, were $246,483,000. The Company used these proceeds, plus cash
and cash equivalents, to fund the tender and repurchase of $254,095,000 of the $400,000,000 8.00% Notes due
November 15, 2006 during the first quarter of fiscal 2006. As a result of the tender and repurchases, the Company
incurred debt extinguishment costs in the first quarter of fiscal 2006 of $11,665,000 pre-tax, $7,052,000 after tax, or
$0.05 per share on a diluted basis, relating primarily to premiums and other transaction costs. During the second
quarter of fiscal 2006, the Company repurchased an additional $2,230,000 of the 8.00% Notes.
58
June 28,
June 30,
2008
2007
(Thousands)
5.875% Notes due March 15, 2014
$
300,000
$
300,000
6.00% Notes due September 1, 2015
250,000
250,000
6.625% Notes due September 15, 2016
300,000
300,000
2% Convertible Senior Debentures due March 15, 2034
300,000
300,000
Other long
-
term debt
34,207
9,073
Subtotal
1,184,207
1,159,073
Discount on notes
(2,709
)
(3,083
)
Long
-
term debt
$
1,181,498
$
1,155,990