Arrow Electronics , Inc. (NYSE:ARW), a leading global provider of electronic components and enterprise computing solutions, has amended its North American Asset Securitization Facility, extending its maturity date to September 10, 2027. This extension, effective as of Monday, reflects the company's ongoing financial strategy to manage its credit and liquidity position.
The amendment, known as Amendment No. 35, was made to the original Transfer and Administration Agreement dated March 21, 2001. Along with the extension of the maturity date, previously set for September 20, 2025, the amendment includes certain other modifications to the facility's terms. The facility is a key component of Arrow Electronics' capital structure, providing it with the flexibility to fund its operations and strategic initiatives.
Participating banks in the facility include Bank of America (NYSE:BAC), National Association; Mizuho Bank, Ltd.; PNC Bank, National Association; Wells Fargo (NYSE:WFC) Bank, N.A.; Truist Bank; and Sumitomo Mitsui (NYSE:SMFG) Banking Corporation. These financial institutions play a crucial role in supporting Arrow Electronics' liquidity and financial operations.
The details of the amendment are outlined in the company's filing with the U.S. Securities and Exchange Commission (SEC) and are available for public review. The company's decision to extend the facility underscores its commitment to maintaining a strong balance sheet and ensuring access to necessary capital.
Arrow Electronics, headquartered in Centennial, Colorado, operates in the wholesale electronic parts and equipment industry and is incorporated in New York. This latest financial maneuver reflects the company's prudent management of its financial obligations and its strategic approach to long-term financial planning.
In other recent news, Arrow Electronics has reported strong Q2 2024 earnings, with total revenue hitting $6.9 billion and non-GAAP earnings per share of $2.78, exceeding market expectations. The company has also issued $500 million in 5.1% notes due 2029, facilitated through an underwriting agreement with BofA Securities, Goldman Sachs & Co (NYSE:GS)., Mizuho Securities USA, and Scotia Capital.
In addition, Arrow Electronics has entered into a strategic distribution agreement with Citrix, a business unit of Cloud Software Group, Inc., set to begin on October 1, 2024.
These are recent developments in the company's business activities, including strong performance in its Global Components and Enterprise Computing Solutions segments, driven by robust demand for cloud and AI-related solutions.
For Q3 2024, Arrow Electronics projects sales to be between $6.37 billion and $6.97 billion, with non-GAAP diluted EPS estimated at $2.10 to $2.30. The company has generated a strong operating cash flow, with $320 million in Q2 and $1.3 billion over the last 12 months.
Furthermore, Arrow Electronics has repurchased nearly $400 million of stock over the past year, demonstrating its commitment to delivering value to shareholders.
The strategic agreement with Citrix is expected to enhance enablement, flexibility, and support for service provider channel partners as they manage their Citrix licenses. Arrow Electronics and Citrix plan to work closely together in delivering solutions to channel partners and their customers.
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