WESCO Distribution, a wholly owned subsidiary of WESCO International, priced a private offering of $650 million of 5.250% senior notes due 2031 and $850 million of 5.500% senior notes due 2034, for a total of $1.5 billion in principal. The notes are guaranteed by WESCO International and its subsidiary Anixter Inc., and will settle on February 27, 2026. Proceeds will be used to redeem all outstanding 7.250% senior notes due 2028 and to repay portions of the company’s accounts‑receivable securitization and asset‑based revolving credit facilities.
The refinancing replaces higher‑cost debt with lower‑interest, longer‑dated notes, reducing WESCO’s long‑term debt burden and extending its maturity profile. The 7.250% notes due 2028 are scheduled to be redeemed on or after June 15, 2026, and the new 5.250% and 5.500% notes lower the overall interest expense, improving balance‑sheet flexibility and supporting capital‑intensive growth initiatives.
WESCO reported $24 billion in annual sales in 2025, employs roughly 21,000 people, and operates more than 700 sites across about 50 countries. The company targets 20% earnings‑per‑share growth in 2026 and has highlighted strong demand in its data‑center and AI‑driven segments. CEO John Engel noted that the firm is "not even remotely close to seeing a peak in AI‑driven data centers," underscoring the long‑term growth potential in that area.
Investors reacted cautiously to the announcement, with concerns focused on the company’s financing strategy and future financial health. The market reaction reflects scrutiny of WESCO’s debt levels and the impact of the new notes on its cost of capital.
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