Avnet has more than doubled its credit limits after agreeing a $1.25bn (£799m) facility with a quintet of major banks.
The Phoenix-based distributor has signed a $1bn, five-year unsecured revolving credit facility. The Bank of America will act as the letter of credit issuer, with syndication agents including the Royal Bank of Scotland, BNP Paribas, the Bank of Nova Scotia and the Bank of Tokyo-Mitsubishi. Also included in the facility is a $250m accordion feature, allowing Avnet to extend its borrowing limit to $1.25bn.
The distributor's existing facility was agreed in autumn 2007 and was worth an initial $500m, with an added $100m accordion feature.
Raymond Sadowski, chief financial officer at Avnet, said: "With the significant growth in Avnet's business since we signed our previous credit facility, we determined this was an excellent time to expand our credit availability. This five-year facility significantly increases our liquidity at attractive terms and conditions and, together with our strong balance sheet, provides the financial flexibility to pursue our strategic growth objectives.
"There was significant demand for participation in the facility and this strong sponsorship demonstrates confidence by the financial community in Avnet's future and its solid financial condition."
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