02:28 PM EDT, 09/02/2025 (MT Newswires) -- (Updates with the stock price movement in the headline and the first paragraph.)

Avnet (AVT) shares fell more than 5% in recent Tuesday trading after the company said it plans a $500 million private offering of convertible senior notes due 2030.

The company said it also expects to grant to the initial purchasers an option for an additional $75 million of the notes, for settlement within a 13-day period from the issuance date.

The notes will mature on Sept. 1, 2030, unless earlier converted, redeemed, or repurchased, the company said.

Avnet intends to use the net proceeds to repurchase shares of its common stock of up to about $100 million and to repay a portion of the amounts outstanding under its revolving credit facility.

If the overallotment option is exercised, Avnet said it expects to use the net proceeds for general corporate purposes, including the repayment of additional outstanding indebtedness.

Price: 51.62, Change: -2.95, Percent Change: -5.41