Debt

3 Months Ended

Oct. 03, 2026

Debt

Debt

4. Debt

Short-term debt consists of the following (carrying balances in thousands):

	October 3,		June 27,		October 3,		June 27,
	2026		2026		2026		2026
	Interest Rate				Carrying Balance
Accounts receivable securitization program	—		4.49	%	$	—	$	500,000
Convertible Notes (September 2030)(1)	1.75	%	—			650,000		—
Term loans - current portion	4.44	%	4.07	%		89,323		89,806
Other short-term debt	3.93	%	4.49	%		122,128		144,146
Short-term debt					$	861,451	$	733,952

⁽¹⁾The Company classified its $650 million of 1.75% Convertible Notes as short-term debt following the satisfaction of certain conversion conditions. As the Avnet share price exceeded approximately $91 for more than 20 trading days in a 30 day consecutive period during the quarter, the note holders have the ability to put the notes to Avnet for redemption for 90 days from the balance sheet date.

Long-term debt consists of the following (carrying balances in thousands):

	October 3,		June 27,		October 3,		June 27,
	2026		2026		2026		2026
	Interest Rate				Carrying Balance
Accounts receivable securitization program (due July 2028)	3.91	%	—		$	25,400	$	—
Credit Facility (due January 2030)	3.92	%	4.82	%		1,181,000		557,000
Term loans - noncurrent portion	5.00	%	4.17	%		458,705		173,925
Other long-term debt	4.74	%	4.74	%		16,853		18,481
Public notes due:
March 2028	6.25	%	6.25	%		500,000		500,000
September 2030 (Convertible Notes)	—		1.75	%		—		650,000
May 2031	3.00	%	3.00	%		300,000		300,000
September 2031	5.65	%	—			550,000		—
June 2032	5.50	%	5.50	%		300,000		300,000
Long-term debt before discount and debt issuance costs						3,331,958		2,499,406
Discount and debt issuance costs – unamortized						(25,523)		(20,542)
Long-term debt					$	3,306,435	$	2,478,864

Other short-term debt consists of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the ongoing working capital requirements of the Company, including its foreign operations. The available unused capacity under the uncommitted lines of credit available to the Company and its subsidiaries was approximately $325.0 million as of October 3, 2026, and June 27, 2026.

In July 2026, the Company amended and extended its trade accounts receivable securitization program (the “Securitization Program”) in the United States with a group of financial institutions for two years, which is due in July 2028. The Securitization Program allows the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings of up to $700 million, an increase from the previous limit of $500 million. The Securitization Program does not qualify for off balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts

receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $1.70 billion and $1.23 billion at October 3, 2026, and June 27, 2026, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold.

The Company has a five-year $1.75 billion revolving credit facility (the “Credit Facility”) with a syndicate of banks, which expires in January 2030. It consists of revolving credit facilities and the issuance of up to $200.0 million of letters of credit and up to $300.0 million of loans in certain approved currencies. As of October 3, 2026, and June 27, 2026, there were $0.7 million and $0.8 million, respectively, in letters of credit issued under the Credit Facility. Under the Credit Facility, the Company may select from various interest rate options, currencies, and maturities. The Credit Facility contains certain covenants, including various limitations on debt incurrence, share repurchases, dividends, investments, and capital expenditures. The Credit Facility also includes a financial covenant requiring the Company to maintain a leverage ratio below a certain threshold, which the Company was in compliance with as of October 3, 2026, and June 27, 2026.

In October 2026, the Company amended its Credit Facility to increase the revolving line of credit by $1.00 billion to $2.75 billion and to permit the Company to request up to $1.00 billion of additional commitments.

In August 2026, the Company entered into a credit agreement (“2026 Term Loan”) for $375 million maturing in July 2028. The loan is priced at a variable interest rate based on Term SOFR or a base rate, plus an applicable margin determined by the Company’s credit ratings. The Term Loan contains certain covenants, with which the Company was in compliance as of October 3, 2026.

The Convertible Notes accrue interest at a rate of 1.75% per annum. Before June 1, 2030, noteholders will have the right to convert their Convertible Notes only upon the occurrence of certain events, including but not limited to, the Company’s common stock trading above approximately $91 per share for each of at least 20 trading days, whether or not consecutive, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter, the market value of the Convertible Notes trading below 98% of the product of the trading price of the Company’s common stock and the conversion rate for a specific period, and certain fundamental changes to the Company’s corporate structure. The initial conversion price is approximately $70.27 per share of common stock.

The Company may redeem all or any portion of the Convertible Notes, at the Company’s option, on or after September 8, 2028, if the sale price of the Company’s common stock has been at least approximately $91 per common share for at least 20 trading days during any 30 consecutive trading-day period.

Upon conversion of the Convertible Notes, the Company must satisfy the aggregate principal amount of the notes being converted in cash. For any conversion obligation exceeding the aggregate principal amount, the Company may, at its discretion, settle the remainder through cash, shares of the Company’s common stock, or a combination thereof.

In August 2026, the Company issued $550 million in aggregate principal amount of 5.65% Notes due 2031. The related discount and issuance costs will be amortized to interest expense over the term of the notes and are not considered material to the consolidated financial statements. Interest is payable semi-annually, in arrears, in March and September, commencing March 2027.

As of October 3, 2026, the carrying value and fair value of the Company’s total debt was $4.17 billion and $4.37 billion, respectively. At June 27, 2026, the carrying value and fair value of the Company’s total debt was $3.21 billion and $3.46 billion, respectively. Fair value for public notes including convertible notes was estimated based on quoted market prices (Level 1) and, for other forms of debt, fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities (Level 2).