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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Long-term debt consists of the following:
The Company has a five-year $500,000,000 unsecured revolving credit facility (the “Credit Agreement”) with a
syndicate of banks which expires in September 2012. Under the Credit Agreement, the Company may elect 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 27, 2009. As of the end of fiscal 2009, there were
$86,565,000 in borrowings outstanding under the Credit Agreement included in “other long-term debt” in the
consolidated financial statements. In addition, there were $1,511,000 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 28, 2008, there were $19,689,000 in borrowings
outstanding under the Credit Agreement and $24,264,000 in letters of credit issued under the Credit Agreement.
Substantially all of the $300,000,000 2% Convertible Senior Debentures due March 15, 2034 (the “Debentures”
)
were put to the Company by holders of the Debentures who exercised their right to require the Company to purchase
the Debentures for cash on March 15, 2009 at the Debentures’
full principal amount plus accrued and unpaid interest.
The Company paid $298,059,000 plus accrued interest using cash on hand. The remaining $1,941,000 of the
Debentures that were not put to the Company in March were repaid on April 30, 2009.
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.
57
June 27,
June 28,
2009
2008
(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
Other long
term debt
98,907
34,207
Subtotal
948,907
1,184,207
Discount on notes
(2,334
)
(2,709
Long
term debt
$
946,573
$
1,181,498