Avnet 2015 Annual Report Download - page 62

TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
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Long-termdebtconsistsofthefollowing:
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  July 2, 2016  June 27, 2015 July 2, 2016June 27, 2015 
  Interest Rate Carrying Balance 
Revolvingcreditfacilities:             
Accountsreceivablesecuritizationprogram  —   0.59 %  $ —  $ 650,000 
CreditFacility  1.72 %  1.45 %   150,000   50,000 
Notesdue:         
September2016  —   6.63 %   —   300,000 
June2020  5.88 %  5.88 %   300,000   300,000 
December2022  4.88 %  4.88 %   350,000   350,000 
April2026  4.63 %  — %   550,000   — 
Otherlong-termdebt  1.92 %  2.06 %   1,551  1,828 
Long-termdebtbeforediscountanddebtissuancecosts         1,351,551   1,651,828 
Discountanddebtissuancecosts         (12,347) (5,327) 
Long-termdebt        $ 1,339,204 $ 1,646,501 
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TheCompanyhasafive-year$1.25billionseniorunsecuredrevolvingcreditfacility(the“CreditFacility”)withasyndicate
ofbanks,consistingofrevolvingcreditfacilitiesandtheissuanceofupto$150.0millionoflettersofcredit,whichexpiresinJuly
2019. Subject to certain conditions, the Credit Facility may be increased up to $1.50 billion. Under the Credit Facility, the
Companymayselectfromvariousinterestrateoptions,currenciesandmaturities.TheCreditFacilitycontainscertaincovenants
includingvariouslimitationsondebtincurrence,sharerepurchases,dividends,investmentsandcapitalexpenditures.TheCredit
Facilityalso includes financial covenantsrequiringthe Company to maintain minimuminterestcoverage and leverage rations,
whichtheCompanywasincompliancewithasofJuly2,2016.AtJuly2,2016,andJune27,2015,therewere$5.6millionand
$1.9million,respectively,inlettersofcreditissuedundertheCreditFacility.
In March 2016, the Company issued $550.0 million of 4.625% Notes due April 2026 (“4.625% Notes”). The Company
receivedproceedsof$546.0millionfromtheoffering,netofdiscountsandincurred$4.5millioninunderwritingfeesandother
debt issuance costs. The 4.625% Notes rank equally in right of payment with all existing andfuture senior unsecured debt of
Avnetandinterestwillbepayablesemi-annuallyeachyearonApril15andOctober15.
InAugust2014,theCompanyamendedandextendeditsaccountsreceivablesecuritizationprogram(the“Program”)witha
group of financial institutions to allow the Company to transfer, on an ongoing revolving basis, an undivided interest in a
designatedpooloftradeaccountsreceivable,toprovidesecurityorcollateralforborrowingsuptoamaximumof$900.0million.
TheProgramdoesnotqualifyforoffbalancesheetaccountingtreatmentandanyborrowingsundertheProgramarerecordedas
debtintheconsolidatedbalance sheets. UndertheProgram,the Companylegallysells and isolatescertainU.S.trade accounts
receivableintoawhollyownedandconsolidatedbankruptcyremotespecialpurposeentity.Suchreceivables,whicharerecorded
within“Receivables”intheconsolidatedbalancesheets,totaled$1.46billionand$1.41billionatJuly2,2016,andJune27,2015,
respectively.TheProgramcontainscertaincovenantsrelatingtothequalityofthereceivablessold.TheProgramalsorequiresthe
Companytomaintaincertainminimuminterestcoverageandleverageratios,whichtheCompanywasincompliancewithasof
July2,2016.TheProgramhasatwo-yeartermthatexpiresinAugust2016andasaresultisconsideredshort-termdebtasof
July2,2016.Therewere$730.0millioninborrowingsoutstandingundertheProgramasofJuly2,2016,and$650.0millionasof
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