PITTSBURGH — WESCO Distribution, Inc., (NYSE: WCC) today announced that it will redeem all of its outstanding 5.375 percent Senior Notes due 2024. The $350 million aggregate principal amount of outstanding notes will be redeemed on July 2, 2021, at a redemption price equal to 101.344 percent of the principal amount of the Senior Notes, together with accrued and unpaid interest to the redemption date. WESCO intends to fund the redemption using cash and availability under its Receivables Facility and its separate revolving credit facility.
The redemption of the Senior Notes and an amendment to the Company’s Receivable Facility completed on June 1, 2021, are expected to result in total interest expense savings of approximately $2 million in 2021 and $18 million per year thereafter based on current interest rates. This transaction continues WESCO’s focus on deleveraging and further strengthening its balance sheet to meet its objective to reduce its net leverage ratio to below 3.5x by June 2023.
This press release shall not constitute a notice of redemption of the Senior Notes, and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.Tagged with Biggest News, wesco