Avnet 2005 Annual Report Download - page 65

AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Ì (Continued)
In February 2003, the Company used the proceeds of $465,313,000, net of underwriting fees, from the
issuance in that month of the Company's $475,000,000 of 9
3
/ 4 % Notes to redeem $159,141,000 of its
6.45% Notes due August 15, 2003 (the ""6.45% Notes'') and $220,056,000 of its 8.20% Notes due October 17,
2003 (the ""8.20% Notes). The excess proceeds after these early redemptions were held in an escrow account
and used to repay the remaining principal on the 6.45% Notes and 8.20% Notes at their respective maturity
dates plus interest due through their maturities. At June 27, 2003, the balance in this escrow account was
$78,543,000. During the third quarter of fiscal 2003, the Company incurred debt extinguishment costs of
$13,487,000 pre-tax, $8,152,000 after-tax and $0.07 per share on a diluted basis, related primarily to premiums
and other transaction costs associated with the tender and early redemption of the 6.45% Notes and the
8.20% Notes.
In June 2003, the Company had a multi-year credit facility with a syndicate of banks led by Bank of
America that provided up to $350,000,000 in financing that was to mature on October 25, 2004. At June 27,
2003 and during fiscal 2004, there were no outstanding borrowings under this multi-year credit facility.
Because the Company did not expect to draw on the facility prior to its October 2004 expiration, the Company
terminated the facility in September 2003. The Company wrote-off the remaining unamortized deferred loan
costs associated with this facility, which amounted to $4,514,000 as of the date the facility was terminated
(see Note 17).
The Company had total borrowing capacity of $700,000,000 at July 2, 2005 under the Credit Facility and
the asset securitization program (see Note 3), against which $19,700,000 in letters of credit were issued under
the Credit Facility as of July 2, 2005, resulting in $680,300,000 of net availability. Although these issued
letters of credit are not actually drawn upon at July 2, 2005, they utilize borrowing capacity under the Credit
Facility and are considered in the overall borrowing capacity noted above.
Aggregate debt maturities for 2006 through 2010 and thereafter are as follows (in thousands):
2006ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 61,298
2007ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 400,546
2008ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 475,859
2009ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 903
2010ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 886
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 304,091
Total debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,243,583
As a result of the Company's August 2005 issuance of the 6% Notes and tender offer to purchase up to
$250,000,000 of the 8% Notes, approximately $250,000,000 of the fiscal 2007 maturities noted in the table
above have, subsequent to fiscal 2005, been replaced by approximately $250,000,000 of new debt maturing in
fiscal 2016.
At July 2, 2005, the fair value, generally based upon quoted market prices, of the 2% Convertible Senior
Debentures due March 15, 2034 is $289,500,000. Additionally, the $175,000,000 of the 9
3
/ 4 % Notes that are
not covered by the fair value hedge discussed above had a fair value of $196,000,000 at July 2, 2005.
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