Anixter International Inc. Financial Statement Analysis
ANIXTER INTERNATIONAL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
5.50% Senior Notes Due 2023
On August 18, 2015, the Company's primary operating subsidiary, Anixter Inc., completed the issuance of $350.0 million
principal amount of Senior notes due 2023 ("Notes due 2023"). The Notes due 2023 were issued at a price that was 98.75% of
par, which resulted in a discount related to underwriting fees of $4.4 million. The discount is reported on the Consolidated
Balance Sheet as a reduction to the face amount of the Notes due 2023 and is being amortized to interest expense over the term
of the related debt, using the effective interest method. In addition, $1.7 million of deferred financing costs were paid, which are
being amortized through maturity using the straight-line method. The Notes due 2023 pay interest semi-annually at a rate of
5.50% per annum and will mature on March 1, 2023. In addition, Anixter Inc. may at any time redeem some or all of the Notes
due 2023 at a price equal to 100% of the principal amount plus a "make whole" premium. If the Company experiences certain
kinds of changes of control, Anixter Inc. must offer to repurchase all of the Notes due 2023 outstanding at 101% of the
aggregate principal amount repurchased, plus accrued and unpaid interest. The proceeds were used to partially finance the
Power Solutions acquisition. Anixter International Inc. fully and unconditionally guarantees the Notes due 2023, which are
unsecured obligations of Anixter Inc.
5.125% Senior Notes Due 2021
On September 23, 2014, the Company's primary operating subsidiary, Anixter Inc., completed the issuance of $400.0
million principal amount of Senior notes due 2021 ("Notes due 2021"). The Notes due 2021 were issued at a price that was
98.50% of par, which resulted in a discount related to underwriting fees of $6.0 million. Net proceeds from this offering were
approximately $393.1 million after also deducting for approximately $0.9 million of deferred financing costs paid that are being
amortized through maturity using the straight-line method. The discount is reported on the Consolidated Balance Sheet as a
reduction to the face amount of the Notes due 2021 and is being amortized to interest expense over the term of the related debt,
using the effective interest method. The Notes due 2021 pay interest semi-annually at a rate of 5.125% per annum and will
mature on October 1, 2021. In addition, Anixter Inc. may at any time redeem some or all of the Notes due 2021 at a price equal
to 100% of the principal amount plus a "make whole" premium. If Anixter Inc. and/or the Company experience certain kinds of
changes of control, it must offer to repurchase all of the Notes due 2021 outstanding at 101% of the aggregate principal amount
repurchased, plus accrued and unpaid interest. The proceeds were used by Anixter Inc. to repay amounts outstanding under the
accounts receivable credit facility, to repay certain additional borrowings under the 5-year senior unsecured revolving credit
agreement that had been incurred for the specific purpose of funding the Tri-Ed acquisition, to provide additional liquidity for
maturing indebtedness and for general corporate purposes. Anixter International Inc. fully and unconditionally guarantees the
Notes due 2021, which are unsecured obligations of Anixter Inc.
Short-term borrowings
Anixter has borrowings under other bank revolving lines of credit totaling $8.8 million and $6.1 million at the end of
fiscal 2019 and 2018, respectively. The Company's short-term borrowings have maturity dates within the next fiscal year.
However, all of the borrowings at the end of fiscal 2019 have been classified as long-term at January 3, 2020, as the Company
has the intent and ability to refinance the debt under existing long-term financing agreements.
Retirement of Debt
In the fourth quarter of 2018, Anixter retired the below described 5.625% Senior notes due 2019, which had a maturity
value of $350.0 million. The proceeds from the issuance of Notes due 2025 and available borrowings under Anixter's revolving
lines of credit were used to settle the maturity value. The Company paid a $3.9 million make whole premium and incurred $0.7
million of additional expense due to the write-off of discounts and deferred financing costs on the early payment of debt.
On April 30, 2012, the Company's primary operating subsidiary, Anixter Inc., completed the issuance of $350.0 million
principal amount of Senior notes due 2019 ("Notes due 2019"). The Notes due 2019 were issued at a price that was 98.25% of
par, which resulted in a discount related to underwriting fees of $6.1 million. Net proceeds from this offering were
approximately $342.9 million after also deducting for approximately $1.0 million of deferred financing costs paid that were
amortized through maturity using the straight-line method. The discounts were reported on the Consolidated Balance Sheet as a
reduction to the face amount of the Notes due 2019 and were amortized to interest expense over the term of the related debt,
using the effective interest method. The Notes due 2019 paid interest semi-annually at a rate of 5.625% per annum and were
scheduled to mature on May 1, 2019.
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