CDW Corp. unveiled plans for a private offering of nearly $1.07
billion in eight-year senior notes, seeking proceeds to pay down
shorter-term debt.
The provider of technology services, which was acquired by
private-equity firms Madison Dearborn Partners LLC and Providence
Equity Partners Inc. for $7.3 billion in 2007, joined the throngs
of companies issuing debt lately, with many seeking proceeds to
refinance as interest rates hover near historic lows.
CDW is in the midst of a tender offer to buy back $890 million
in senior exchange notes and $317 million in senior pay-in-kind
election exchange notes. Both debt series are due in 2015 and have
rates of at least 11%. It said Monday it would use the debt sale to
help fund those repurchases.
Last month, the company reported its fourth-quarter loss
narrowed to $24.2 million from $37.3 million a year earlier as
sales jumped 16%. Electronics retailers face a tough consumer
spending environment and several semiconductor companies have
warned of weak demand for PCs.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com