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Wesco Announces Commencement of Private Offering of Senior Notes Due 2033

1. Wesco plans a $600M senior notes offering via its wholly owned subsidiary. This move underscores a major refinancing effort. 2. Proceeds will be used to redeem 10.625% Series A Preferred Stock. This could lower costly interest expenses. 3. The net proceeds will repay portions of its asset-based revolving and securitization facilities. This action aims to improve balance sheet leverage. 4. The offering is subject to market conditions under Rule 144A and Regulation S. Legal and regulatory considerations remain in focus.

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FAQ

Why Bullish?

Redeeming high-cost preferred stock and repaying debt typically lowers financing costs and improves margins, similar to historical cases where refinancing led to better credit profiles and increased investor confidence.

How important is it?

The $600M offering directly impacts Wesco’s balance sheet, refinancing expensive liabilities and potentially improving long-term financial health, making it significant for stock performance.

Why Long Term?

The restructuring of the capital structure will gradually accelerate earnings improvement and risk reduction over the coming years.

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ANIXTER
PITTSBURGH, Feb. 25, 2025 /PRNewswire/ -- WESCO International, Inc. (NYSE: WCC) ("Wesco"), a leading provider of business-to-business distribution, logistics services, and supply chain solutions, today announced that its wholly owned subsidiary, WESCO Distribution, Inc. ("Wesco Distribution"), intends to offer (the "Offering") to eligible purchasers, subject to market and other conditions, $600 million aggregate principal amount of senior notes due 2033 (the "Notes"). Wesco intends to use the net proceeds from this Offering to redeem all of its outstanding 10.625% Series A Fixed-Rate Reset Cumulative Perpetual Preferred Stock (the "Series A Preferred Stock") and all of the related depositary shares representing fractional interests in the Series A Preferred Stock (the "Series A Depositary Shares") on June 22, 2025, and repay a portion of the amounts outstanding under its asset-based revolving credit facility (the "ABL Facility"). Prior to such redemption, Wesco intends to use the net proceeds from this Offering to repay a portion of the outstanding borrowings under its accounts receivable securitization facility and the ABL Facility. The Notes will be unsecured, unsubordinated debt obligations of Wesco Distribution, and will rank equally with Wesco Distribution's other existing and future unsecured, unsubordinated obligations. The Notes will be guaranteed on an unsecured, unsubordinated basis by Wesco and its wholly owned subsidiary, Anixter Inc. (the "Guarantees"). The Notes and related Guarantees will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release does not and will not constitute an offer to sell, or the solicitation of an offer to buy, the Notes or any other securities, nor will there be any sale of the Notes or other securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful. Any offer will be made only by means of a private offering memorandum. This press release does not constitute a notice of redemption with respect to the Series A Preferred Stock and the related Series A Depositary Shares. About WescoWesco International (NYSE: WCC) builds, connects, powers and protects the world. Headquartered in Pittsburgh, Pennsylvania, Wesco is a FORTUNE 500® company with approximately $22 billion in annual sales in 2024 and a leading provider of business-to-business distribution, logistics services and supply chain solutions. Wesco offers a best-in-class product and services portfolio of Electrical and Electronic Solutions, Communications and Security Solutions, and Utility and Broadband Solutions. The Company employs approximately 20,000 people, partners with the industry's premier suppliers, and serves thousands of customers around the world. With millions of products, end-to-end supply chain services, and leading digital capabilities, Wesco provides innovative solutions to meet customer needs across commercial and industrial businesses, contractors, educational institutions, government agencies, technology companies, telecommunications providers, and utilities. Wesco operates more than 700 sites, including distribution centers, fulfillment centers, and sales offices in approximately 50 countries, providing a local presence for customers and a global network to serve multi-location businesses and global corporations. Forward-Looking StatementsAll statements made herein that are not historical facts should be considered as "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. These forward-looking statements include, but are not limited to, statements regarding the proposed terms of the Offering, the timing of the Offering and the anticipated use of proceeds therefrom, including the redemption of the Series A Preferred Stock and the related Series A Depositary Shares. Such statements can generally be identified by the use of words such as "anticipate," "plan," "believe," "estimate," "intend," "expect," "project" and similar words, phrases or expressions or future or conditional verbs such as "could," "may," "should," "will" and "would," although not all forward-looking statements contain such words. These forward-looking statements are based on current expectations and beliefs of Wesco's management, as well as assumptions made by, and information currently available to, Wesco's management, current market trends and market conditions and involve various risks and uncertainties, some of which are beyond Wesco's and Wesco's management's control, and which may cause actual results to differ materially from those contained in forward-looking statements. Wesco's actual results could differ materially from those expressed in any forward-looking statement made by Wesco or on Wesco's behalf. In light of these risks and uncertainties, there can be no assurance that the forward-looking information will in fact prove to be accurate. Accordingly, you should not place undue reliance on such statements. Wesco has undertaken no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Those risks, uncertainties and assumptions include whether Wesco will be able to consummate the Offering, including the satisfaction of customary closing conditions with respect to the Offering of the Notes. Additional factors that could cause results to differ materially from those described above can be found in Wesco's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and Wesco's other reports filed with the U.S. Securities and Exchange Commission. Contact Information:Investor Relations            Will RuthrauffDirector, Investor Relations484-885-5648 Corporate CommunicationsJennifer SnidermanVice President, Corporate Communications717-579-6603 SOURCE Wesco International

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