Avnet amends credit agreements, raising leverage limit to 5.00 to 1.00 through March 2026
On August 28, 2025, Avnet and Avnet Holding Europe amended two credit agreements, temporarily raising the maximum consolidated leverage ratio from 4.00 to 1.00 to 5.00 to 1.00 for periods ending around September 30, 2025 through March 31, 2026. During this relief period, Avnet is restricted from certain restricted payments, but it may keep paying cash dividends at no higher amount or frequency and may repurchase up to $100 million of common stock, which gives shareholders a clearer view of the limits on capital returns while the covenant is loosened.
Key points
- Maximum leverage ratio raised from 4.00 to 1.00 to 5.00 to 1.00 for four-quarter periods ending around September 30, 2025 through March 31, 2026
- Ratio steps down to 4.50 to 1.00 for the period ending around June 30, 2026, then returns to 4.00 to 1.00 from September 30, 2026
- Cash dividends may continue without increasing in amount or frequency; share repurchases capped at $100 million during the relief period
- Amendments cover the Third Amended and Restated Credit Agreement dated January 17, 2025 and the Credit Agreement dated July 1, 2025, with Bank of America, N.A. as administrative agent
The filing
Written by AI (Anthropic Claude, claude-haiku-5-5) on Nov 8, 2026, 12:59 AM ET, from the text of the filing and its press-release exhibits only. Written later: this filing was briefed after the fact, when past filings were added to the site, so the brief may be read with hindsight; the filing itself is the record of what was known on August 28, 2025.
Briefs are written by AI from the filing text (each brief's own page names the model) and can contain mistakes — open the filing before acting on anything. Impact (1-5) and tone are the model's reading of the filing for shareholders, not a price forecast. Not investment advice.