PITTSBURGH, Sept. 22, 2016 /PRNewswire/ -- WESCO
International, Inc. (NYSE: WCC) ("WESCO"), a leading provider of
electrical, industrial, and communications MRO and OEM products,
construction materials, and advanced supply chain management and
logistics services, announces that the redemption of its 6.0%
Convertible Senior Debentures due 2029 (the "Debentures") was
completed on September 15, 2016.
Holders of the Debentures received cash totaling $344,804,000, which was equal to the principal
amount of the then- outstanding Debentures, in addition to accrued
and unpaid interest. Holders who surrendered the Debentures
for conversion received 18 shares of WESCO stock for each
$1,000 principal amount of Debentures
converted. In total, 6,267,688 shares were issued.
As discussed in WESCO's second quarter earnings call on
July 28, the Company will record a
non-recurring, non-cash, pre-tax charge of $123.9 million in the third quarter as a result
of redeeming the Debentures. Given the Company's estimates of
the third quarter effective tax rate and diluted share count, this
equates to a loss per diluted share of approximately $1.70.
The Company expects average diluted shares outstanding of
approximately 49 million for the third quarter, including the
effect of shares issued upon conversion of the debentures.
"This transaction has enabled us to simplify our capital
structure and eliminate future EPS dilution associated with these
convertible debt instruments," said John
Engel, Chairman, President and CEO. "We also expect an
ongoing benefit from reduced interest expense from having replaced
the Debentures with lower-cost debt."
WESCO International, Inc. (NYSE: WCC), a publicly traded
Fortune 500 holding company headquartered in Pittsburgh, Pennsylvania, is a leading
provider of electrical, industrial, and communications maintenance,
repair and operating (MRO) and original equipment manufacturers
(OEM) products, construction materials, and advanced supply chain
management and logistic services. 2015 annual sales were
approximately $7.5 billion. The
company employs approximately 9,300 people, maintains relationships
with over 25,000 suppliers, and serves over 80,000 active customers
worldwide. Customers include commercial and industrial businesses,
contractors, government agencies, institutions, telecommunications
providers, and utilities. WESCO operates nine fully automated
distribution centers and approximately 500 full-service branches in
North America and international
markets, providing a local presence for customers and a global
network to serve multi-location businesses and multi-national
corporations.
The matters discussed herein may contain forward-looking
statements that are subject to certain risks and uncertainties that
could cause actual results to differ materially from expectations.
Certain of these risks are set forth in the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 2015, as well as the Company's other
reports filed with the Securities and Exchange Commission.
Logo - http://photos.prnewswire.com/prnh/20160323/347627LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/wesco-international-inc-completes-redemption-of-60-convertible-senior-debentures-due-2029-300332851.html
SOURCE WESCO International, Inc.