Avnet 2012 Annual Report Download - page 54

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7. External financing
Short-term debt consists of the following:
Bank credit facilities consist of various committed and uncommitted lines of credit with financial institutions utilized primarily to support
the working capital requirements of foreign operations. The weighted average interest rate on the bank credit facilities was 6.1% and 7.8%
at the
end of fiscal 2012 and 2011 , respectively.
See Note 3 for the discussion of the accounts receivable securitization program and associated borrowings outstanding.
Long-term debt consists of the following:
During fiscal 2012, the Company entered into a five-year $1,000,000,000
senior unsecured revolving credit facility (the "2012 Credit
Facility") with a syndicate of banks, which expires in November 2016
. In connection with the 2012 Credit Facility, the Company terminated its
existing unsecured $500,000,000 credit facility (the "2008 Credit Facility") which was to expire in September 2012
. Under the 2012 Credit
Facility, the Company may select from various interest rate options, currencies and maturities. The 2012 Credit Facility contains certain
covenants, all of which the Company was in compliance with as of June 30, 2012 . At June 30, 2012 , there were $110,072,000
of borrowings
under the 2012 Credit Facility included in “Other long-term debt” in the preceding table. In addition, there were $17,202,000
letters of credit
issued under the 2012 Credit Facility, which represents a utilization of the 2012 Credit Facility capacity but are not recorded in the consolidated
balance sheet as the letters of credit are not debt. At July 2, 2011 , there were $122,093,000
of borrowings outstanding under the 2008 Credit
Facility included in “Other long-term debt” in the preceding table and $16,602,000 in letters of credit issued.
As a result of the acquisition of Bell in July 2010, the Company assumed 3.75%
Notes due March 2024, which had a fair value of
$110,000,000
and that were convertible into Bell common stock; however, as of the acquisition completion date, the debt was no longer
convertible into shares. Under the terms of the 3.75% Notes, the Company could have redeemed some or all of the 3.75%
Notes for cash anytime
on or after March 5, 2011 and the note holders could have required the Company to purchase for cash some or all of the 3.75%
Notes on
March 5, 2011, March 5, 2014 or March 5, 2019 at a redemption price equal to 100%
of the principal amount plus interest. During the first
quarter of fiscal 2011, the Company issued a tender offer for the 3.75% Notes for which $5,205,000
was tendered and paid in September 2010.
During the third quarter of fiscal 2011, the note holders tendered substantially all of the remaining notes for which $104,395,000
was paid in
March 2011. The remaining $400,000 of outstanding notes are included in “other long-term debt” in the preceding table.
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June 30, 2012
July 2, 2011
(Thousands)
Bank credit facilities
$
201,390
$
81,951
Borrowings under the accounts receivable securitization program (see Note 3)
670,000
160,000
Other debt due within one year
1,014
1,128
Short-term debt
$
872,404
$
243,079
June 30, 2012
July 2, 2011
(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
5.875% Notes due June 15, 2020
300,000
300,000
Other long-term debt
124,456
126,512
Subtotal
1,274,456
1,276,512
Discount on notes
(2,471
)
(3,003
)
Long-term debt
$
1,271,985
$
1,273,509