Avnet Launches $500M Private Offering of Senior Notes

Avnet, a global electronic component distributor and solutions provider, plans to launch a $500 million private offering of senior notes. The company operates through two primary groups: Electronic Components (EC) and Farnell, serving a variety of markets including industrial, automotive, defense, and aerospace. EC offers customer support options throughout the product lifecycle, while Farnell primarily supports lower-volume customers through an e-commerce channel.

Avnet, Inc. (NASDAQ: AVT), a global technology distributor and solutions provider, has announced its intention to offer $500.0 million in convertible senior notes in a private placement. The notes, due in 2030, will be available to qualified institutional buyers under Rule 144A [2]. The company also grants initial purchasers an option to purchase up to an additional $75.0 million in notes within a 13-day period [2].

The notes will be senior unsecured obligations and will mature on September 1, 2030, unless earlier converted, redeemed, or repurchased. Avnet plans to use the net proceeds from the offering for several purposes, including repurchasing up to $100.0 million in shares of its common stock, repaying a portion of its revolving credit facility, and for general corporate purposes [1][2]. If initial purchasers exercise their option to purchase additional notes, the proceeds will be used for general corporate purposes, including repaying additional outstanding indebtedness [2].

The stock price of Avnet dropped 3% during pre-market hours of trading on Tuesday, September 2, 2025, following the announcement [1]. This offering is part of Avnet's ongoing strategy to optimize its capital structure and support its growth initiatives.

Avnet operates through two primary groups: Electronic Components (EC) and Farnell. EC serves various markets, including industrial, automotive, defense, and aerospace, offering comprehensive customer support options throughout the product lifecycle. Farnell primarily supports lower-volume customers through an e-commerce channel, distributing a wide range of electronic components and tools [3].

The offering is subject to market and other conditions and is expected to be priced and sold privately. The notes and any shares of Avnet's common stock issuable upon conversion will not be registered under the Securities Act of 1933, as amended, or any state securities law [2].

References:
[1] https://seekingalpha.com/news/4490997-avnet-proposes-500m-convertible-senior-notes-offering
[2] https://www.businesswire.com/news/home/20250901796244/en/Avnet-Announces-Proposed-Convertible-Senior-Notes-Offering
[3] https://www.marketscreener.com/news/avnet-to-launch-500-million-private-offering-of-senior-notes-ce7c50d3dc80ff24