We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arrow Electronics Inc. (ARW - Free Report) recently commenced an offering of senior unsecured notes worth $500 million. The offering carries an interest rate of 3.875%, with maturity due in 2028.The company expects the offering to be completed by June 12, 2017, upon the fulfilment of certain customary conditions.
Arrow Electronics filed for registration with the U.S. Securities and Exchange Commission. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will be acting as administrative agents, along with certain other lenders.
The raised amount will enable Arrow to pay back its notes scheduled in 2018, 2020, 2021 and 2027 and carry an interest rate of 3%, 6%, 5.125% and 7.5%, respectively.. The fund will help the company to increase fund availability and invest in short-term interest-bearing accounts and securities.
The remaining net proceeds from the transaction will be used for working capital requirements and other general corporate purposes including acquisitions and repayment of debts.
Arrow Electronics exited first quarter of 2017 with cash and cash equivalents of $521.6 million compared with $534.3 million at the end of fourth-quarter 2016. Long-term debt (including current portion) was $2.46 billion compared with $2.79 billion at the end of the previous quarter. During the reported quarter, the company had negative operating cash flow of $20.9 million.
In the stringent regulatory landscape, this offering is expected to enhance the company's balance sheet and support its future growth. Additionally, it will also assist Arrow Electronics to bring down its capital expenditures
Last Words
The company posted an impressive first-quarter performance and optimistic guidance for the second quarter.
Notably, over the past one year, Arrow electronics’ shares have gained 17.72%, while the Zacks categorized Electronics Parts Distribution industry gained just 6.52% during the same time frame.
Original equipment manufacturers, contract manufacturers and commercial customers are selecting the company’s distribution channels for marketing their products. Its core strength lies in providing best-in-class services and easy-to-acquire technologies. It is anticipated that these factors will prove to be conducive to growth in the quarters ahead.
Meanwhile, incremental sales from strategic acquisitions, such as Computerlinks, are anticipated to boost the top line. Uncertain economic conditions, a high debt burden and competition from the likes of Avnet (AVT - Free Report) remain concerns.
Applied Materialsand DXChave long-term expected earnings per share growth rate of 16.58% and 8%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Arrow Electronics (ARW) Prices $500M Senior Unsecured Notes
Arrow Electronics Inc. (ARW - Free Report) recently commenced an offering of senior unsecured notes worth $500 million. The offering carries an interest rate of 3.875%, with maturity due in 2028.The company expects the offering to be completed by June 12, 2017, upon the fulfilment of certain customary conditions.
Arrow Electronics filed for registration with the U.S. Securities and Exchange Commission. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC will be acting as administrative agents, along with certain other lenders.
The raised amount will enable Arrow to pay back its notes scheduled in 2018, 2020, 2021 and 2027 and carry an interest rate of 3%, 6%, 5.125% and 7.5%, respectively.. The fund will help the company to increase fund availability and invest in short-term interest-bearing accounts and securities.
The remaining net proceeds from the transaction will be used for working capital requirements and other general corporate purposes including acquisitions and repayment of debts.
Arrow Electronics exited first quarter of 2017 with cash and cash equivalents of $521.6 million compared with $534.3 million at the end of fourth-quarter 2016. Long-term debt (including current portion) was $2.46 billion compared with $2.79 billion at the end of the previous quarter. During the reported quarter, the company had negative operating cash flow of $20.9 million.
In the stringent regulatory landscape, this offering is expected to enhance the company's balance sheet and support its future growth. Additionally, it will also assist Arrow Electronics to bring down its capital expenditures
Last Words
The company posted an impressive first-quarter performance and optimistic guidance for the second quarter.
Notably, over the past one year, Arrow electronics’ shares have gained 17.72%, while the Zacks categorized Electronics Parts Distribution industry gained just 6.52% during the same time frame.
Original equipment manufacturers, contract manufacturers and commercial customers are selecting the company’s distribution channels for marketing their products. Its core strength lies in providing best-in-class services and easy-to-acquire technologies. It is anticipated that these factors will prove to be conducive to growth in the quarters ahead.
Meanwhile, incremental sales from strategic acquisitions, such as Computerlinks, are anticipated to boost the top line. Uncertain economic conditions, a high debt burden and competition from the likes of Avnet (AVT - Free Report) remain concerns.
Currently, Arrow Electronics has a Zacks Rank #3 (Hold). Few better-ranked stocks in the technology sector are Applied Materials, Inc. (AMAT - Free Report) and DXC Technology Company. (DXC - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materialsand DXChave long-term expected earnings per share growth rate of 16.58% and 8%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>