Anixter Offers 10 Percent Senior Notes

GLENVIEW, Ill. (AP) — Anixter International Inc., a distributor of fasteners and electrical and electronic wire and cable, said Wednesday it has completed an offering of 10 percent senior notes with a maturity of $200 million.

Net proceeds, after estimated expenses, are about $180.5 million, Anixter International said. The proceeds will be used to pay down short term debt and for general corporate purposes.

Dennis Letham, executive vice president for finance, cautioned that there will be "some earnings dilution" from the higher cost of the borrowing in comparison to loans to be replaced. However, he said the capital provides "added assurance and flexibility" in the recession and will support growth when the economy improves.

The sale extends the average maturities of the Glenview, Ill., company's borrowings and provides improved liquidity, Letham said.

Anticipated cash flows and available bank lines of credit allow Anixter International to meet obligations of 3.25 percent zero coupon convertible bonds in July and the annual renewal of accounts receivable securitization facility in September, Letham said.

The issuing of the senior notes "more fully insures our ability to meet those potential liquidity events," he said.

The notes, which are due 2014, were offered through its subsidiary, Anixter Inc.

Anixter International shares fell 5 cents to $26.88 in afternoon trading.