Arrow Electronics this month signed two new credits, replacing smaller deals that were about to expire. The company closed a $625 million, 364-day facility and a $625 million, three-year facility and Robert Klatell, executive v.p., and Ira Birns, treasurer, say the new facilities are slightly larger than the previous ones to accommodate the company's growth. Revenue was $9.3 billion in 1999 and $12.9 billion in 2000. "This is to fund organic growth. We have made acquisitions, but that's really not an imperative with these facilities," said Klatell.
Arrow Electronics, based in Melville, N.Y., is among the largest distributors of electronic component and computer products, with sales of $13 billion. It also sells semiconductors, computer peripherals, passive components, and interconnect products to more than 175,000 computer manufacturers and commercial customers worldwide.
One facility was due to expire this month, and Birns explained that it was easier for the company to refinance both deals at the same time. J.P. Morgan Chase led the previous deal, and is one of the leads on the new facility as well. "We have a long-term relationship with them," said Klatell, adding that the company did go out to bid.
Fleet Boston Financial and Bank of America were part of the syndicate on the previous facilities and were added as lead arrangers for the new deal. Francis Scricco, ceo, said the banks have been longtime supporters of the company, providing working capital and acquisition financing. Klatell explained that these facilities are the company's principle lines of credit. Details on the pricing could not be ascertained by press time.