Ingram Micro 1999 Annual Report Download - page 45

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4433
Ingram Micro
Annual Report
On June 9, 1998, the Company sold $1,330,000 aggregate principal amount at maturity of its Zero Coupon Convertible
Senior Debentures due 2018 in a private placement. The Company subsequently registered the resale of these debentures with the
SEC. Gross proceeds from the offering were $460,400. The debentures were sold at an issue price of $346.18 per $1,000 principal
amount at maturity (representing a yield to maturity of 5.375% per annum), and are convertible into shares of the Company’s
Class A Common Stock at a rate of 5.495 shares per $1,000 principal amount at maturity, subject to adjustment under certain
circumstances. In March 1999, the Company repurchased Zero Coupon Convertible Senior Debentures with a carrying value of
$56,504 as of the repurchase date for approximately $50,321 in cash.The debenture repurchase resulted in an extraordinary gain
of $3,778 (net of $2,405 in income taxes).
As of January 1, 2000, the debentures were convertible into approximately 6.4 million shares of the Company’s Class A
Common Stock.The debentures are redeemable at the option of the Company on or after June 9, 2003 at the issue price plus
accrued original issue discount to the date of redemption. Each debenture is subject to repurchase at the option of the holder, as
of June 9, 2001, June 9, 2003, June 9, 2008, and June 9, 2013, or if there is a Fundamental Change (as defined), at the issue price
plus accrued original issue discount to the date of the redemption. In the event of a repurchase at the option of the holder (other
than upon a Fundamental Change), the Company may, at its option, satisfy the redemption in cash or Class A Common Stock,
or any combination thereof. In the case of any such repurchase as of June 9, 2001, the Company may elect, in lieu of the payment
of cash or Class A Common Stock, to satisfy the redemption in new Zero Coupon Convertible Senior Debentures due 2018.At
January 1, 2000, and January 2, 1999, the issue price plus accrued original issue discount was $440,943 and $473,475, respectively.
The Company has additional lines of credit, short-term overdraft facilities, and other credit facilities with various financial
institutions worldwide aggregating $601,024 and $209,924 in 1999 and 1998, respectively. Most of these arrangements are on an
uncommitted basis and are reviewed periodically for renewal. At January 1, 2000, and January 2, 1999, the Company had $248,185
and $52,759, respectively, outstanding under these facilities.The weighted average interest rate on the outstanding borrowings under
these lines of credit and short-term overdraft facilities was 6.24% and 7.17% at January 1, 2000, and January 2, 1999, respectively.
Other long-term debt, excluding the convertible debentures, consists of the following:
Fiscal Year End
1999 1998
Revolving Credit facilities $503,537 $994,549
Commercial paper 155,470 199,673
Overdraft facilities 31,020 38,978
Other 217,165 13,781
907,192 1,246,981
Current maturities of other long-term debt (31,020) (38,978)
$876,172 $1,208,003
Annual maturities of long-term debt as of January 1, 2000, including the convertible debentures, are as follows:
2000 $31,020
2001 —
2002 876,172
2003 —
2004 —
Thereafter 440,943
$1,348,135