TD SYNNEX Announces Launch of Secondary Public Offering of Common Stock and Concurrent Share Repurchase
TD SYNNEX (SNX) announces a proposed secondary public offering of 9,000,000 shares of its common stock by certain entities managed by affiliates of Apollo Global Management, Inc. The underwriters have an option to purchase an additional 1,350,000 shares. The Company is not selling any shares and will not receive proceeds from the sale. A Concurrent Share Repurchase of 500,000 shares is authorized, not exceeding $60.0 million, funded by existing cash. The underwriters will not receive compensation for the shares repurchased by the Company.
The announcement of a secondary public offering by TD SYNNEX Corporation represents a strategic move by the selling stockholders, managed by affiliates of Apollo Global Management, to liquidate a portion of their holdings. This activity often indicates a shift in the ownership structure, which can lead to changes in the market's perception of the company's stock. The offering's size, 9 million shares with an option for underwriters to purchase an additional 1.35 million, is substantial and could potentially affect the stock's liquidity and price volatility in the short term.
The Concurrent Share Repurchase, capped at $60 million, is a counterbalance to the dilutive effect of the secondary offering, signaling confidence by the company in its stock's value. This buy-back is a common practice used to return value to shareholders, as it can increase earnings per share and improve shareholder equity. Investors will likely monitor how these transactions impact the company's cash reserves, as well as the stock's supply and demand dynamics.
TD SYNNEX's decision not to sell any new shares and not to receive proceeds from the secondary offering suggests a neutral financial impact on the company's balance sheet from the offering itself. However, the repurchase of shares indicates a use of existing cash, which investors should consider in the context of the company's overall liquidity and investment strategy. The repurchase plan's alignment with existing share repurchase programs may be viewed positively, as it reflects a continued commitment to capital return strategies.
Investors should also scrutinize the terms of the offering, including the pricing of the shares and the timing, which can provide insights into current market conditions and the perceived value of TD SYNNEX's stock. The involvement of major financial institutions as underwriters and bookrunners adds a layer of credibility to the offering and can facilitate a smoother transaction process.
03/27/2024 - 04:18 PM
FREMONT, Calif. & CLEARWATER, Fla. --(BUSINESS WIRE)--
TD SYNNEX Corporation (NYSE: SNX) (“TD SYNNEX” or the “Company”) today announced a proposed secondary public offering of 9,000,000 shares of its common stock currently held by certain entities managed by affiliates of Apollo Global Management, Inc. (the “Selling Stockholders”). The underwriters will have a 30-day option to purchase up to an additional 1,350,000 shares of common stock from the Selling Stockholders. TD SYNNEX is not selling any shares of its common stock and will not receive any proceeds from the sale of the shares by the Selling Stockholders in the offering.
In addition, the Company has authorized the purchase from the underwriters of 500,000 shares of common stock as part of the secondary public offering, provided that the total amount of shares to be repurchased does not exceed $60.0 million
J.P. Morgan Securities LLC, Barclays Capital Inc., BofA Securities, Inc., and Mizuho Securities USA LLC are acting as joint bookrunners and underwriters for the offering.
Shelf registration statements (File No. 333-259270 and File No. 333-274915) relating to the resale of the shares were previously filed with the Securities and Exchange Commission (the “SEC”) and became effective on September 2, 2021 and October 10, 2023, respectively. The offering will be made only by means of a written prospectus and prospectus supplement that form a part of the registration statement. Copies of the preliminary prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and, when available, may be obtained by contacting: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204, or by emailing at prospectus-eq_fi@jpmchase.com ; Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 (or by email at barclaysprospectus@broadridge.com or telephone at 1-888-603-5847); BofA Securities, Inc., NC1-022-02-25 201, North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department Email: dg.prospectus_requests@bofa.com , 1-800-294-1322; or Mizuho Securities USA LLC, Attention: Equity Capital Markets, 1271 Avenue of Americas , New York, NY , 10020, by phone at (212) 205-7600, or by email at US-ECM@us.mizuho-sc.com .
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About TD SYNNEX
TD SYNNEX is a leading global distributor and solutions aggregator for the IT ecosystem. We’re an innovative partner helping more than 150,000 customers in 100+ countries to maximize the value of technology investments, demonstrate business outcomes and unlock growth opportunities. Headquartered in Clearwater, Florida , and Fremont, California , TD SYNNEX’s approximately 23,000 co-workers are dedicated to uniting compelling IT products, services and solutions from 2,500+ best-in-class technology vendors. Our edge-to-cloud portfolio is anchored in some of the highest-growth technology segments including cloud, cybersecurity, big data/analytics, AI, IoT, mobility and everything as a service. TD SYNNEX is committed to serving customers and communities, and we believe we can have a positive impact on our people and our planet, intentionally acting as a respected corporate citizen. We aspire to be a diverse and inclusive employer of choice for talent across the IT ecosystem.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by use of terms such as “propose,” “will,” “expect,” “shall,” and similar terms or the negative of such terms, and include, without limitation, statements regarding the expected timing, size, and completion of the proposed offering, the grant to the underwriters of the option to purchase additional shares, and other information that is not historical information. Actual results or developments may differ materially from those projected or implied in these forward-looking statements. Factors that may cause such a difference include risks and uncertainties related to completion of the public offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the public offering. More information about the risks and uncertainties faced by TD SYNNEX is contained in the section captioned “Risk Factors” in the prospectus supplement related to the public offering and from time to time in the Company’s Securities and Exchange Commission filings, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2023, as well as subsequent SEC filings. The forward-looking statements contained in this release are as of the date of this release, and, except as required by law, TD SYNNEX does not undertake any obligation to update any such statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327288131/en/
Liz Morali
ir@tdsynnex.com
Bobby Eagle
bobby.eagle@tdsynnex.com
Source: TD SYNNEX
What is the ticker symbol of TD SYNNEX ?
The ticker symbol of TD SYNNEX is SNX.
How many shares are being offered in the proposed secondary public offering?
9,000,000 shares of common stock are being offered.
Who are the underwriters for the offering?
J.P. Morgan Securities , Barclays Capital Inc., BofA Securities, Inc., and Mizuho Securities USA are the underwriters.
How will the Concurrent Share Repurchase be funded?
The Concurrent Share Repurchase will be funded from existing cash on hand.
Will TD SYNNEX receive any proceeds from the sale of shares by the Selling Stockholders?
TD SYNNEX will not receive any proceeds from the sale of shares by the Selling Stockholders.
