, a distributor of computer products, said it expects to record a pretax debt-extinguishment charge of about $25 million to $27 million, or 10 cents to 11 cents a share, in the first quarter.
The charge will relate to the termination of interest rate swaps and the write-off of certain deferred financing costs. The company has elected to redeem on Oct. 12 all of its 9 3/4% notes due Feb. 15, 2008, of which $361.4 million is outstanding.
Avnet also said it plans to terminate $200 million in interest rate swaps related to the notes by the end of the first quarter. Upon completing the redemption, the company expects to reduce annual interest expense by about $11 million to $12 million after taxes, or 8 cents a share.
This story was created through a joint venture between TheStreet.com and IRIS.