NOTE 4 — DEBT


	October 31, 2012			January 31, 2012
	(In thousands)
Senior notes, interest at 3.75% payable semi-annually, due September 21, 2017	$	350,000		$	0
Less—unamortized debt discount		(1,304	)		0

Senior notes, net		348,696			0
Capital leases		6,088			6,512
Loan payable to Brightstar Corp.		0			14,940
Interest-free revolving credit loan payable to Brightstar Corp.		0			36,306
Other committed and uncommitted revolving credit facilities, average interest rate of 4.37% and 6.27% at October 31, 2012 and January 31, 2012, expiring on various dates through fiscal 2015		65,331			47,985

		420,115			105,743

Less—current maturities (included as “revolving credit loans and current portion of long-term debt, net”)		(65,848	)		(48,490	)

Total Long-term debt	$	354,267		$	57,253

Senior Notes

In September 2012, the Company issued $350.0 million aggregate principal amount of 3.75% Senior Notes in a public offering, resulting in cash proceeds of approximately $345.8 million, net of debt discount and debt issuance costs of approximately $1.3 million and $2.9 million, respectively (the “Senior Notes”). The debt issuance costs incurred in connection with the public offering will be amortized over the life of the Senior Notes as additional interest expense using the effective interest method. The Company will pay interest on the Senior Notes semi-annually in arrears on March 21 and September 21 of each year, beginning on March 21, 2013. The Company, at its option, may redeem the Senior Notes at any time in whole or from time to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of the Senior Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the Senior Notes being redeemed, discounted at a rate equal to the sum of the applicable Treasury Rate plus 50 basis points, plus accrued and unpaid interest up to the date of redemption. The Senior Notes are senior, unsecured obligations and rank equally in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness.

Loans Payable to Brightstar Corp.

In October 2010, Brightstar Corp. entered into an agreement to loan Brightstar Europe Limited, which was a consolidated joint venture between Tech Data and Brightstar Corp. (“the joint venture”), its share of the funding requirements for an acquisition by the the joint venture (the “Acquisition Loan”). The Acquisition Loan from Brightstar, plus any accrued interest, had a repayment date of September 2015, or earlier if agreed between the two parties, and interest at the applicable LIBOR rate plus 4.0% per year, to be paid annually on October 1.

The Company also had an interest-free revolving credit loan from Brightstar that was issued in connection with the operations of the joint venture (the “Brightstar Revolver”). The terms of the Brightstar Revolver included no contractual repayment date and allowed for the revolving credit loan to increase or decrease in accordance with the working capital requirements of the joint venture, as determined by the Company. Effective October 2010, a resolution of the joint venture’s board was approved stating that the Brightstar Revolver will not be repaid for the foreseeable future and therefore the revolving credit loan had been classified as long-term debt in the Company’s Consolidated Balance Sheet at January 31, 2012.

As discussed in Note 3 above, in September 2012, the Company completed the acquisition of Brightstar Corp.’s fifty percent ownership interest in the joint venture and in accordance with the terms of the acquisition agreement, the Company repaid both the Acquisition Loan and the Brightstar Revolver.