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Tech Data Corporation -- Moody's withdraws ratings for Tech Data senior unsecured notes that were not issued

·10 mins read

Rating Action: Moody's withdraws ratings for Tech Data senior unsecured notes that were not issued

Global Credit Research - 20 Aug 2020

NOTE: On August 25, 2020, the press release was corrected as follows: The methodology paragraph and the first and second paragraphs of the Regulatory Disclosures section were removed. Revised release follows.

New York, August 20, 2020 -- Moody's Investors Service (Moody's) is withdrawing the ratings for certain Tech Data Corporation senior unsecured notes. Moody's assigned ratings on June 15, 2020 with the expectation of new senior unsecured notes. Instead, the senior unsecured notes of Tech Data (old) were transferred to Tech Data as a result of the acquisition by Apollo Global Management, Inc.

The following is a summary of today's actions:

..Issuer: Tech Data Corporation

.New senior unsecured notes -- B1 Withdrawn

RATINGS RATIONALE

The $66 million senior unsecured notes due 2022 and the $131 million senior unsecured notes due 2027 were transferred from Tech Data (old). They are not affected by today's actions and their B1 instrument ratings are unchanged.

One of the largest distributors of technology equipment and software in the world, Tech Data Corporation provides IT products and solutions to value-added resellers, direct marketers, retailers, and corporate resellers. Based in Clearwater, FL, the company focuses on the small-to-medium sized business (SMB) segment, a market for which the large original equipment manufacturers (OEMs) and software publishers find inefficient to use direct sales. In November 2019, Apollo Global Management, Inc. entered into an agreement to acquire Tech Data resulting in a $6.1 billion take-private transaction expected to close by mid-2020.

REGULATORY DISCLOSURES

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

The Global Scale Credit Rating on this Credit Rating Announcement was issued by one of Moody's affiliates outside the EU and is endorsed by Moody's Deutschland GmbH, An der Welle 5, Frankfurt am Main 60322, Germany, in accordance with Art.4 paragraph 3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies. Further information on the EU endorsement status and on the Moody's office that issued the credit rating is available on www.moodys.com.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Carl Salas VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Stephen Sohn Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653

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