Insight Enterprises, Inc. (NASDAQ: NSIT) has announced its intention to offer $500 million aggregate principal amount of senior notes due 2032. The company plans to utilize the net proceeds from this offering to repay a portion of its outstanding borrowings under its senior secured revolving credit facility due 2027. Any remaining net proceeds are expected to be used for general corporate purposes.
The notes will be senior unsecured obligations of the company and will be guaranteed on a senior unsecured basis by each of its existing and future direct and indirect U.S. subsidiaries that is or becomes a guarantor or borrower under its ABL facility, subject to certain exceptions.
The offering will be conducted through a transaction exempt from registration under the Securities Act of 1933, with the notes being offered and sold only to qualified institutional buyers and non-U.S. persons outside the United States.
In the previous period, Insight Enterprises, Inc. had outstanding borrowings under its senior secured revolving credit facility due 2027. The proposed offering of senior notes due 2032 represents a strategic move to address these outstanding borrowings and provide for general corporate purposes.
The company's decision to pursue this offering indicates a proactive approach to managing its financial obligations and capital structure, potentially reducing its future interest expenses and strengthening its balance sheet. The market has reacted to these announcements by moving the company's shares 1.1% to a price of $207.38. If you want to know more, read the company's complete 8-K report here.
