ARROW ELECTRONICS, INC. (NYSE:ARW) Files An 8-K Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN
OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
Amended and Restated Credit Agreement
On December 23, 2016 Arrow Electronics, Inc. (the Company) and
certain of the Companys subsidiaries, as borrowers, entered into
an Amended and Restated Credit Agreement with the lenders from
time to time parties thereto, and JPMorgan Chase Bank, N.A., as
administrative agent and JPMorgan Chase Bank, N.A., acting
through its Hong Kong branch, as administrative agent to any
non-U.S. subsidiary borrower organized under the laws of Hong
Kong (the Credit Agreement), which amends the Companys existing
credit facility dated as of December 13, 2013. The Credit
Agreement provides for extensions of credit in the aggregate
amount of up to $1,800,000,000 consisting of revolving credit
facilities and letters of credit.
Interest and fees under the Credit Agreement will generally be
payable at least on a quarterly basis and the applicable margins
and fees are determined based on the actual or implied senior
unsecured debt ratings of the Company in effect from time to time
by Moodys Investors Service, Inc. or Standard Poors Ratings
Group.
The Company and certain of its U.S. and non-U.S. subsidiaries may
be borrowers under the Credit Agreement. Loans may be made, and
letters of credit may be issued, under the Credit Agreement in
U.S. Dollars, British Pounds Sterling, Euros and other specified
currencies. The Companys obligations are guaranteed by certain of
the Companys domestic subsidiaries. The obligations of any
subsidiary borrowers are guaranteed by the Company.
The Credit Agreement contains a number of covenants, including,
among other things, the requirement to comply with various
financial ratios and tests, restrictions on the Companys and
certain of its subsidiaries ability to incur liens; merge or
consolidate with other companies; enter into agreements that
limit its or its subsidiaries ability to incur liens or its
subsidiaries ability pay dividends; restrictions on the ability
to make certain acquisitions; and restrictions on the ability of
the Companys subsidiaries to incur indebtedness.
The Credit Agreement will mature on December 23, 2021 and the
maturity may be accelerated upon the occurrence and during the
continuation of an event of default. Events of default under the
Credit Agreement include the failure to pay principal or interest
when due; the breach of any representation or warranty; covenant
defaults; insolvency of the Company or certain subsidiaries;
imposition of certain judgments; certain events relating to the
Employee Retirement Income Security Act of 1974 (as amended); a
change in control (with respect to Companys board of directors or
the ownership of the Companys shares); impairment of loan
documentation or any guarantees; and cross-defaults to certain
other indebtedness.
ITEM 8.01 OTHER EVENTS.
Press Release
On December 23, 2016, the Company issued a press release
regarding the execution of the Credit Agreement. A copy of the
press release is filed hereto as Exhibit 99.1 hereto and is
incorporated herein by reference.
Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
|
Exhibit Number |
Description of Document |
|
99.1 |
Press Release, issued December 23, 2016. |
About ARROW ELECTRONICS, INC. (NYSE:ARW)
Arrow Electronics, Inc. is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions and tools for industrial and commercial customers. The Company operates in two segments: Global Components and Global Enterprise Computing Solutions. The Company distributes electronic components to original equipment manufacturers and contract manufacturers through its Global Components segment and provides enterprise computing solutions to value-added resellers (VARs) through its Global Enterprise Computing Solutions segment. The Company’s Global Enterprise Computing Solutions segment’s portfolio of computing solutions includes datacenter, cloud, security and analytics solutions. ARROW ELECTRONICS, INC. (NYSE:ARW) Recent Trading Information
ARROW ELECTRONICS, INC. (NYSE:ARW) closed its last trading session up +0.25 at 71.98 with 136,686 shares trading hands.
