WESCO INTERNATIONAL, INC. S-3
As filed with the Securities and Exchange Commission on
March 14, 2005
Registration
No. 333-
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
WESCO INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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25-1723342 |
(State or other jurisdiction of incorporation or
organization) |
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(I.R.S. Employer Identification No.) |
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219
(412) 454-2200
(Address, including zip code, and telephone number, including
area code, of registrants principal executive offices)
Stephen A. Van Oss
Senior Vice President and
Chief Financial and Administrative Officer
WESCO International, Inc.
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219
(412) 454-2200
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
Copy to:
Michael C. McLean
Kirkpatrick & Lockhart Nicholson Graham LLP
Henry W. Oliver Building
535 Smithfield Street
Pittsburgh, Pennsylvania 15222
(412) 355-6500
Approximate date of commencement of proposed sale to the
public: From time to time after the effective date of this
Registration Statement.
If the only securities being registered on this Form are being
offered pursuant to dividend or interest reinvestment plans,
please check the following
box. o
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act of 1933, other than
securities offered only in connection with dividend or interest
reinvestment plans, check the following
box. þ
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act
of 1933, please check the following box and list the Securities
Act registration statement number of the earlier effective
registration statement for the same
offering. o
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act of 1933, check the
following box and list the Securities Act registration statement
number of the earlier effective registration statement for the
same
offering. o
If delivery of the prospectus is expected to be made pursuant to
Rule 434 under the Securities Act of 1933, please check the
following
box. o
CALCULATION OF REGISTRATION FEE
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Proposed Maximum |
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Proposed Maximum |
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Title of Each Class of |
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Amount to be |
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Offering Price |
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Aggregate |
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Amount of |
Securities to be Registered |
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Registered |
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Per Unit |
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Offering Price(1)(2) |
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Registration Fee |
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Common Stock, $.01 Par Value
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13,075,536 shares |
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$35.50(1) |
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$464,181,528 |
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$54,635(2) |
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(1) |
Estimated solely for the purpose of calculating the registration
fee; computed in accordance with Rule 457(c) on the basis
of the average of the high and low sales prices for the common
stock on March 11, 2005 as reported by the New York Stock
Exchange. |
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(2) |
$1,217 of which was previously paid on October 22, 2004 in
connection with the unsold securities registered for sale under
the Registration Statement on Form S-3
(No. 333-119909) of WESCO International, Inc. and WESCO
Distribution, Inc. by the selling stockholders named therein and
is being offset against the total filing fee due for this
Registration Statement pursuant to Rule 457(p) under the
Securities Act of 1933, as amended. Such securities registered
for sale by the selling stockholders named therein were
deregistered pursuant to Post-Effective Amendment No. 1 to
the Registration Statement on Form S-3
(No. 333-119909). |
The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until this Registration
Statement shall become effective on such date as the Securities
and Exchange Commission, acting pursuant to said
Section 8(a) may determine.
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE
CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION
STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS
EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE
SECURITIES NOR DOES IT SEEK AN OFFER TO BUY THESE SECURITIES IN
ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT
PERMITTED.
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SUBJECT TO COMPLETION, DATED
MARCH 14, 2005
PROSPECTUS
WESCO INTERNATIONAL, INC.
13,075,536 Shares
of Common Stock
The selling stockholders identified on page 5 may sell from
time to time up to 13,075,536 shares of common stock of
WESCO International, Inc. owned by them.
The common stock of WESCO International is listed on the New
York Stock Exchange and trades under the ticker symbol
WCC.
This prospectus describes some of the general terms that may
apply to these securities and the general manner in which these
shares may be offered. The specific terms of any shares of
common stock to be offered, and the specific manner in which
they may be offered, will be described in one or more
supplements to this prospectus. This prospectus may not be used
to sell shares of common stock unless it is accompanied by a
prospectus supplement.
We urge you to carefully read Risk Factors
beginning on page 2 and other information included or
incorporated by reference in this prospectus and any prospectus
supplement for a discussion of factors you should carefully
consider before deciding to invest in any securities offered by
this prospectus.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY OTHER
REGULATORY BODY HAS APPROVED OR DISAPPROVED OF THESE SECURITIES
OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The date of this prospectus
is ,
2005.
TABLE OF CONTENTS
WHERE YOU CAN FIND MORE INFORMATION
Available Information
We have filed a registration statement on Form S-3
(together with all amendments, exhibits, schedules and
supplements thereto, the registration statement)
under the Securities Act of 1933, as amended (the
Securities Act). This prospectus, which forms part
of that registration statement, does not contain all of the
information set forth in that registration statement.
We file reports, proxy statements and other information with the
SEC. These reports, proxy statements and other information that
we file with the SEC can be read and copied at the SECs
Public Reference Room at 450 Fifth Street, N.W.,
Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 to obtain further information on the operation of
the Public Reference Room. The SEC maintains an Internet site
that contains reports, proxy and information statements and
other information regarding issuers that file electronically
with the SEC, including us. The SECs Internet address is
http://www.sec.gov. In addition, our common stock, $.01 par
value, is listed on the New York Stock Exchange under the ticker
symbol WCC, and our reports and other information
can be inspected at the offices of the NYSE, 20 Broad
Street, New York, New York 10005. Our Internet address is
http://www.wesco.com. The information on our Internet site is
not a part of this prospectus.
Incorporation by Reference
The SEC allows us to incorporate by reference
information that we file with it. This means that we can
disclose important information to you by referring you to other
documents. Any information we incorporate in this manner is
considered part of this prospectus except to the extent updated
and superseded by information contained in this prospectus. Some
information that we file with the SEC after the date of this
prospectus and until the selling stockholders named in this
prospectus sell all of the shares of common stock covered by
this prospectus will automatically update and supersede the
information contained in this prospectus.
We incorporate by reference the following documents that we have
filed with the SEC and any filings that we will make with the
SEC in the future under Section 13(a), 13(c), 14 or 15(d)
of the Securities Exchange Act of 1934, as amended (the
Exchange Act) until all of the shares of common
stock covered by this prospectus are sold by the selling
stockholders named in this prospectus, including between the
date of this prospectus and the date on which the registration
statement of which this prospectus is a part is declared
effective by the SEC:
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Our SEC Filings (File No. 001-14989) |
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Period for or Date of Filing |
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Annual Report on Form 10-K
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Year Ended December 31, 2004 |
Current Reports on Form 8-K
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January 13 and February 4, 2005 |
Form 8-A
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May 4, 1999 |
Pursuant to General Instruction B of Form 8-K, any
information submitted under Item 2.02, Results of
Operations and Financial Condition, or Item 7.01,
Regulation FD Disclosure, of Form 8-K is not deemed to
be filed for the purpose of Section 18 of the
Exchange Act, and we are not subject to the liabilities of
Section 18 with respect to information submitted under
Item 2.02 or Item 7.01 of Form 8-K. We are not
incorporating by reference any information submitted under
Item 2.02 or Item 7.01 of Form 8-K into any
filing under the Securities Act or the Exchange Act or into this
prospectus.
Statements contained in this prospectus as to the contents of
any contract or other document referred to in this prospectus do
not purport to be complete, and where reference is made to the
particular provisions of that contract or other document, those
references are qualified in all respects by reference to all of
the provisions contained in that contract or other document. Any
statement contained in a document incorporated by reference, or
deemed to be incorporated by reference, into this prospectus
will be deemed to be modified or superseded for purposes of this
prospectus to the extent that a statement contained herein or in
any other subsequently filed document which also is incorporated
by reference in this prospectus modifies or supersedes that
statement. Any such statement so modified or superseded will not
be deemed, except as so modified or superseded, to constitute a
part of this prospectus.
We will provide without charge, upon written or oral request, a
copy of any or all of the documents that are incorporated by
reference into this prospectus and a copy of any or all other
contracts or documents which are referred to in this prospectus.
Requests should be directed to: WESCO International, Inc.,
Attention: Corporate Secretary, 225 West Station Square Drive,
Suite 700, Pittsburgh, Pennsylvania 15219, telephone
number: (412) 454-2200. You also may review a copy of the
registration statement and its exhibits at the SECs Public
Reference Room in Washington, D.C., as well as through the
SECs Internet site.
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SUMMARY
This summary is a brief discussion of material information
contained in, or incorporated by reference into, this prospectus
as further described above under Where You Can Find More
Information. This summary does not contain all of the
information that you should consider before investing in our
common stock. We urge you to carefully read this entire
prospectus, the documents incorporated by reference into this
prospectus and the prospectus supplement relating to the shares
of common stock that you propose to buy, especially any
description of investment risks that we may include in the
prospectus supplement. Unless the context otherwise requires,
references to WESCO International, the
Company, we, our and
us and similar terms mean WESCO International, Inc.
and its subsidiaries and predecessors.
WESCO International, Inc.
With sales of approximately $3.7 billion in 2004, we are a
leading North American provider of electrical construction
products and electrical and industrial maintenance, repair and
operating supplies, commonly referred to as MRO. We
are the second largest distributor in the estimated
$83 billion U.S. electrical distribution industry, and
the largest provider of integrated supply services. Our
integrated supply solutions and outsourcing services are
designed to fulfill a customers industrial MRO procurement
needs through a highly automated, proprietary electronic
procurement and inventory replenishment system. This system
allows our customers to consolidate suppliers and reduce their
procurement and operating costs. We have approximately 350
branches and five distribution centers located in
48 states, nine Canadian provinces, Puerto Rico, Mexico,
Guam, the United Kingdom, Nigeria, United Arab Emirates and
Singapore. We serve over 100,000 customers worldwide, offering
over 1,000,000 products from over 24,000 suppliers. Our diverse
customer base includes a wide variety of industrial companies;
contractors for industrial, commercial and residential projects;
utility companies; and commercial, institutional and
governmental customers. Our leading market positions,
experienced workforce, extensive geographic reach, broad product
and service offerings and acquisition program have enabled us to
compete effectively against the companies in our industry.
We are a Delaware corporation with our principal executive
offices located at 225 West Station Square Drive,
Suite 700, Pittsburgh, Pennsylvania 15219, telephone
number (412) 454-2200. Our Internet website is
www.wesco.com. Information contained on our website is
not part of, and should not be construed as being incorporated
by reference into, this prospectus.
About This Prospectus
This prospectus is part of a registration statement that we
filed with the SEC utilizing a shelf registration
process. Under this shelf process, one or more of the selling
stockholders named in this prospectus may sell up to an
aggregate of 13,075,536 shares of our common stock in one
or more offerings from time to time. Each time any of the
selling stockholders offer common stock under this prospectus,
we will provide you with a prospectus supplement that will
describe the specific amounts and prices of the common stock
being offered, as well as market price and dividend information.
The prospectus supplement may also add, update or change
information contained in this prospectus.
You also should read the documents we have referred to you in
Where You Can Find More Information for additional
information about our company, including our financial
statements.
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RISK FACTORS
An investment in our common stock involves risks. In deciding
whether to invest in our common stock, you should carefully
consider the following risk factors and the other information
included or incorporated by reference in this prospectus. The
risks described below are not the only ones we face. Additional
risks and uncertainties that we are unaware of, or that we
currently deem immaterial, also may become important factors
that affect us. If any of these risks occurs, our business and
financial results could be materially adversely affected. In
that case, the trading price of our common stock could decline,
and you could lose all or part of your investment.
Our substantial amount of debt requires significant debt
service obligations that could adversely affect our ability to
fulfill our obligations and could limit our growth and impose
restrictions on our business.
We are and will continue to be for the foreseeable future
significantly leveraged. On March 1, 2005, we redeemed
$123.7 million in principal amount of our
91/8% senior
subordinated notes due 2008. Following the redemption, we have
outstanding $199.7 million aggregate principal amount of
91/8% senior
subordinated notes due 2008. We and our subsidiaries may incur
additional indebtedness in the future, subject to certain
limitations contained in the instruments governing our
indebtedness. Accordingly, we will have significant debt service
obligations. These amounts exclude our accounts receivable
securitization program, through which we may sell up to
$325.0 million of our accounts receivable to a third-party
conduit and remove these receivables and the associated debt
from our consolidated balance sheet.
Our debt service obligations have important consequences,
including but not limited to the following:
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a substantial portion of cash flow from our operations will be
dedicated to the payment of principal and interest on our
indebtedness, thereby reducing the funds available for
operations, future business opportunities and acquisitions and
other purposes and increasing our vulnerability to adverse
general economic and industry conditions; |
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our ability to obtain additional financing in the future may be
limited; |
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as a result of our interest rate swap agreements, approximately
$100.0 million of our fixed rate indebtedness has been
effectively converted to variable rates of interest, which will
make us vulnerable to increases in interest rates; |
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we are more leveraged than certain of our competitors, which
might place us at a competitive disadvantage; and |
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we may be hindered in our ability to adjust rapidly to changing
market conditions. |
Our ability to make scheduled payments of the principal of, or
to pay interest on, or to refinance our indebtedness and to make
scheduled payments under our operating leases or to fund planned
capital expenditures or finance acquisitions will depend on our
future performance, which to a certain extent is subject to
economic, financial, competitive and other factors beyond our
control. There can be no assurance that our business will
continue to generate sufficient cash flow from operations in the
future to service our debt, make necessary capital expenditures
or meet other cash needs. If unable to do so, we may be required
to refinance all or a portion of our existing debt, to sell
assets or to obtain additional financing.
A $190.0 million portion of the purchase commitments under
our Receivables Facility requires an annual renewal of its
terms. That portion of the arrangement expires on
August 30, 2005. The remaining $135.0 million portion
of the purchase commitments under the facility has a three-year
term expiring on August 29, 2007. There can be no assurance
that available funding or that any sale of assets or additional
financing would be possible in amounts on terms favorable to us.
Over the next three years, we are obligated to pay approximately
$52.0 million relating to earnout agreements associated
with past acquisitions, of which $50.0 million is
represented by a note payable
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which is included in our consolidated indebtedness as of
December 31, 2004. Another acquisition agreement also
contains contingent consideration provisions of up to
$17.0 million.
Restrictive debt covenants contained in our revolving credit
facility and the indenture under which our senior subordinated
notes were issued may limit our ability to take certain
actions.
The revolving credit facility and the indenture under which our
senior subordinated notes were issued contain financial and
operating covenants that limit the discretion of our management
with respect to certain business matters including incurring
additional indebtedness and paying dividends. The revolving
credit facility also requires us to meet certain fixed charge
tests depending on credit line availability. Our ability to
comply with these and other provisions of the revolving credit
facility and the indenture may be affected by changes in
economic or business conditions or other events beyond our
control. A failure to comply with the obligations contained in
the revolving credit facility or the indenture could result in
an event of default under either the revolving credit facility
or the indenture which could result in acceleration of the
related debt and the acceleration of debt under other
instruments evidencing indebtedness that may contain
cross-acceleration or cross-default provisions. If the
indebtedness under the revolving credit facility were to be
accelerated, there can be no assurance that our assets would be
sufficient to repay in full such indebtedness and our other
indebtedness.
Downturns in the electrical distribution industry have had in
the past, and may in the future have, an adverse effect on our
sales and profitability.
The electrical distribution industry is affected by changes in
economic conditions, including national, regional and local
slowdowns in construction and industrial activity, which are
outside our control. Our operating results may also be adversely
affected by increases in interest rates that may lead to a
decline in economic activity, particularly in the construction
market, while simultaneously resulting in higher interest
payments under the revolving credit facility. In addition,
during periods of economic slowdown, such as the one we recently
experienced, our credit losses, based on history, could
increase. There can be no assurance that economic slowdowns,
adverse economic conditions or cyclical trends in certain
customer markets will not have a material adverse effect on our
operating results and financial condition.
An increase in competition could decrease sales or
earnings.
We operate in a highly competitive industry. We compete directly
with national, regional and local providers of electrical and
other industrial MRO supplies. Competition is primarily focused
in the local service area and is generally based on product line
breadth, product availability, service capabilities and price.
Other sources of competition are buying groups formed by smaller
distributors to increase purchasing power and provide some
cooperative marketing capability.
Some of our existing competitors have, and new market entrants
may have, greater financial and marketing resources than we do.
To the extent existing or future competitors seek to gain or
retain market share by reducing prices, we may be required to
lower our prices, thereby adversely affecting financial results.
Existing or future competitors also may seek to compete with us
for acquisitions, which could have the effect of increasing the
price and reducing the number of suitable acquisitions. In
addition, it is possible that competitive pressures resulting
from the industry trend toward consolidation could affect growth
and profit margins.
Loss of key suppliers or lack of product availability could
decrease sales and earnings.
Most of our agreements with suppliers are terminable by either
party on 60 days notice or less. Our ten largest
suppliers in 2004 accounted for approximately 35% of our
purchases for the period. Our largest supplier was Eaton
Corporation, through its Eaton Electrical division, accounting
for approximately 12% of our purchases. The loss of, or a
substantial decrease in the availability of, products from any
of our key suppliers, or the loss of key preferred supplier
agreements, could have a material adverse effect on our
business. Supply interruptions also could arise from shortages
of raw materials, labor disputes or weather
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conditions affecting products or shipments, transportation
disruptions, or other reasons beyond our control. In addition,
certain of our products, such as wire and conduit, are commodity
price based products and may be subject to significant price
fluctuations which are beyond our control. An interruption of
operations at any of our five distribution centers could have a
material adverse effect on the operations of branches served by
the affected distribution center. Furthermore, we cannot be
certain that particular products or product lines will be
available to us, or available in quantities sufficient to meet
customer demand. Such limited product access could put us at a
competitive disadvantage.
A disruption of our information systems could increase
expenses, decrease sales or reduce earnings.
A serious disruption of our information systems could have a
material adverse effect on our business and results of
operations. Our computer systems are an integral part of our
business and growth strategies. We depend on our information
systems to process orders, manage inventory and accounts
receivable collections, purchase products, ship products to our
customers on a timely basis, maintain cost-effective operations
and provide superior service to our customers.
We may be subject to regulatory scrutiny and may sustain a
loss of public confidence if we are unable to satisfy regulatory
requirements relating to internal controls over financial
reporting.
Section 404 of the Sarbanes-Oxley Act of 2002 requires us
to perform an evaluation of our internal controls over financial
reporting and have our auditor audit such evaluation on an
annual basis. Compliance with these requirements is expected to
be expensive and time-consuming. While we were able to meet the
required deadlines for the year ended December 31, 2004, no
assurance can be given that we will meet the required deadlines
in future years. If we fail to timely complete this evaluation,
or if our auditors cannot timely audit our evaluations, we may
be subject to regulatory scrutiny and a loss of public
confidence in our internal controls.
Our largest stockholder can exercise significant influence
over our affairs.
As of the date of this prospectus and before giving effect to
any sales hereunder, approximately 28% of the issued and
outstanding shares of common stock of WESCO International is
held by The Cypress Group LLC and its affiliates. Cypress has
the right to appoint one of the nine members of our Board of
Directors and historically has had two representatives on our
Board of Directors. Accordingly, Cypress and its affiliates can
exercise significant influence over our affairs, including the
election of our directors, appointment of our management and
approval of actions requiring the approval of our stockholders,
including the adoption of amendments to our certificate of
incorporation and approval of mergers or sales of substantially
all of our assets.
There is a risk that the market value of our common stock may
decline.
Stock markets have experienced significant price and trading
volume fluctuations, and the market prices of companies in our
industry have been volatile. It is impossible to predict whether
the price of our common stock will rise or fall. Trading prices
of our common stock will be influenced by our operating results
and prospects and by economic, financial and other factors. In
addition, general market conditions, including the level of, and
fluctuations in, the trading prices of stocks generally, and
sales of substantial amounts of common stock by us or our
largest stockholder in the market, or the perception that such
sales could occur, could affect the price of our common stock
and make it more difficult for us to raise funds through future
offerings of common stock.
FORWARD-LOOKING STATEMENTS
You should carefully review the information contained in or
incorporated by reference into this prospectus. In this
prospectus, statements that are not reported financial results
or other historical information are forward-looking
statements. Forward-looking statements give current
expectations or forecasts of future events and are not
guarantees of future performance. They are based on our
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managements expectations that involve a number of business
risks and uncertainties, any of which could cause actual results
to differ materially from those expressed in or implied by the
forward-looking statements.
You can identify these forward-looking statements by the fact
that they do not relate strictly to historic or current facts.
They use words such as anticipates,
believes, estimates,
expects, would, should,
will, will likely result,
forecast, outlook, projects,
and similar expressions in connection with any discussion of
future operating or financial performance.
We cannot guarantee that any forward-looking statements will be
realized, although we believe that we have been prudent in our
plans and assumptions. Achievement of future results is subject
to risks, uncertainties and assumptions that may prove to be
inaccurate. Among others, the factors discussed in Risk
Factors could cause actual results to differ from those in
forward-looking statements included in or incorporated by
reference into this prospectus or that we otherwise make. Should
known or unknown risks or uncertainties materialize, or should
underlying assumptions prove to be inaccurate, actual results
could vary materially from those anticipated, estimated or
projected. You should bear this in mind as you consider any
forward-looking statements.
We undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future
events or otherwise, except as may be required by law. You are
advised, however, to consider any additional disclosures that we
may make on related subjects in future filings with the SEC. You
should understand that it is not possible to predict or identify
all factors that could cause our actual results to differ.
Consequently, you should not consider any list of factors to be
a complete set of all potential risks or uncertainties.
USE OF PROCEEDS
All net proceeds from the sale of common stock under this
prospectus will be received by the selling stockholders.
Accordingly, we will not receive any of the proceeds from any
sale of common stock under this prospectus by any selling
stockholder.
SELLING STOCKHOLDERS
The table below presents certain information regarding the
beneficial ownership of our common stock outstanding as of
December 31, 2004 by two partnerships affiliated with The
Cypress Group L.L.C. (Cypress). The selling
stockholders may sell up to the maximum number of shares of
common stock set forth opposite their respective names in the
table below.
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Number of Shares of | |
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Common Stock | |
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Beneficially Owned | |
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After the Sale of | |
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Maximum Number of | |
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Shares of Common Stock | |
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Maximum Number of | |
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Shares of Common | |
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Beneficially Owned | |
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Shares of Common | |
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Stock | |
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Stock to be Sold | |
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Name of Beneficial Owner |
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Number | |
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Percentage | |
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Hereunder | |
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Number | |
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Percentage | |
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Cypress Merchant Banking Partners L.P.(1)
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12,431,663 |
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26.8 |
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12,431,663 |
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Cypress Offshore Partners L.P.(1)
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643,873 |
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1.4 |
% |
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643,873 |
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|
|
* |
Indicates ownership of less than 1.0% of the common stock. |
|
|
(1) |
Cypress is the general partner of Cypress Associates L.P.
Cypress Associates L.P. is the general partner of Cypress
Merchant Banking Partners L.P. and Cypress Offshore Partners
L.P. Messrs. Singleton and Stern, who are directors of
WESCO International, are members of Cypress and may be deemed to
share beneficial ownership of the shares of common stock shown
as beneficially |
5
|
|
|
owned by such Cypress funds. Messrs. Singleton and Stern
disclaim beneficial ownership of such shares. |
PLAN OF DISTRIBUTION
The selling stockholders may offer common stock pursuant to this
prospectus in one or more of the following ways, or any other
way set forth in an applicable prospectus supplement from time
to time:
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|
to or through underwriting syndicates represented by managing
underwriters; |
|
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|
through one or more underwriters without a syndicate for them to
offer and sell to the public; |
|
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|
through dealers or agents; |
|
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|
to investors directly in negotiated sales or in competitively
bid transactions; or |
|
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|
to holders of other securities in exchanges in connection with
acquisitions. |
Upon our receipt of notice by a selling stockholder that an
arrangement has been entered into for the sale of any of the
common stock offered hereby, a prospectus supplement will be
filed. The prospectus supplement will describe the offering,
including:
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|
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|
the name or names of any underwriters, dealers or agents; |
|
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|
the purchase price and the proceeds to the selling stockholders
from that sale; |
|
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|
any underwriting discounts and other items constituting
underwriters compensation, which in the aggregate will not
exceed eight percent of the gross proceeds of the offering; |
|
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any commissions paid to agents; |
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|
the initial public offering price and any discounts or
concessions allowed or reallowed or paid to dealers; and |
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any securities exchanges on which the securities may be listed. |
Any of the shares covered by this prospectus which qualify for
sale pursuant to Rule 144 under the Securities Act of 1933
may be sold by the selling stockholders under that rule rather
than pursuant to this prospectus.
We are not aware of any arrangements by the selling stockholders
for the sale of any of the shares covered by this prospectus. We
cannot assure you that the selling stockholders will sell any or
all of the common stock covered by this prospectus.
Underwriters
If underwriters are used in a sale, the selling stockholders
participating in the sale will execute an underwriting agreement
with such underwriters regarding the common stock to be sold.
Unless otherwise described in the applicable prospectus
supplement, the obligations of the underwriters to purchase
common stock from the selling stockholders will be subject to
conditions, and the underwriters must purchase all of the shares
of common stock if any are purchased.
The shares of common stock subject to the underwriting agreement
may be acquired by the underwriters for their own account and
may be resold by them from time to time in one or more
transactions, including negotiated transactions, at a fixed
offering price or at varying prices determined at the time of
sale. Underwriters may be deemed to have received compensation
from the selling stockholders in the form of underwriting
discounts or commissions and may also receive commissions from
the purchasers of the securities for whom they may act as agent.
Underwriters may sell these shares of common stock to or through
dealers. These dealers may receive compensation in the form of
discounts, concessions or commissions from the underwriters and
commissions from the purchasers for whom they
6
may act as agent. Any initial offering price and any discounts
or concessions allowed or re-allowed or paid to dealers may be
changed from time to time.
The selling stockholders may authorize underwriters to solicit
offers by institutions to purchase the shares of common stock
subject to the underwriting agreement, at the public offering
price stated in the applicable prospectus supplement, under
delayed delivery contracts providing for payment and delivery on
a specified date in the future. If the selling stockholders sell
shares of common stock under these delayed delivery contracts,
the applicable prospectus supplement will state that this is the
case and will describe the conditions to which these delayed
delivery contracts will be subject and the commissions payable
for that solicitation.
In connection with underwritten offerings of shares of common
stock, the underwriters may engage in over-allotment,
stabilizing transactions, covering transactions and penalty bids
in accordance with Regulation M under the Exchange Act, as
follows:
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|
Over-allotment transactions involve sales in excess of the
offering size, which create a short position for the
underwriters. |
|
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|
Stabilizing transactions permit bids to purchase the underlying
security so long as the stabilizing bids do not exceed a
specified maximum. |
|
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|
Covering transactions involve purchases of the securities in the
open market after the distribution has been completed in order
to cover short positions. |
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|
Penalty bids permit the underwriters to reclaim a selling
concession from a broker/ dealer when the securities originally
sold by that broker-dealer are repurchased in a covering
transaction to cover short positions. |
These stabilizing transactions, covering transactions and
penalty bids may cause the price of our common stock to be
higher than it otherwise would be in the absence of these
transactions. If these transactions occur, they may be
discontinued at any time.
Agents
The selling stockholders also may sell any of the shares of
common stock through agents designated by them from time to
time. Any agent involved in the offer or sale will be
identified, and the commissions payable by the selling
stockholders to these agents will be disclosed, in the
applicable prospectus supplement. These agents will be acting on
a best efforts basis to solicit purchases for the period of its
appointment, unless stated otherwise in the applicable
prospectus supplement.
Direct Sales
The selling stockholders may sell any of the shares of common
stock directly to purchasers. In this case, the selling
stockholders will not engage underwriters or agents in the offer
and sale of these shares of common stock.
Indemnification
The selling stockholders may indemnify underwriters, dealers or
agents who participate in the distribution of shares of common
stock against certain liabilities, including liabilities under
the Securities Act, and may agree to contribute to payments that
these underwriters, dealers or agents may be required to make.
No Assurance of Liquidity
Any underwriters that purchase common stock from any of the
selling stockholders may make a market in the common stock. The
underwriters will not be obligated, however, to make a market
and may
7
discontinue market-making at any time without notice to holders
of the securities. We cannot assure you that there will be
liquidity in the trading market for our common stock.
LEGAL MATTERS
The validity of the shares of common stock offered hereby will
be passed upon for us by Kirkpatrick & Lockhart
Nicholson Graham LLP, Pittsburgh, Pennsylvania.
EXPERTS
The consolidated financial statements of WESCO International,
Inc. incorporated in this prospectus by reference to the Annual
Report on Form 10-K for the year ended December 31,
2004 have been so incorporated in reliance on the report of
PricewaterhouseCoopers LLP, an independent registered public
accounting firm, given on the authority of such firm as experts
in auditing and accounting.
8
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
|
|
Item 14. |
Other Expenses of Issuance and Distribution. |
The expenses in connection with the issuance and distribution of
the securities being registered, other than underwriting
compensation, are:
|
|
|
|
|
|
SEC registration fee
|
|
$ |
53,418 |
|
Legal fees and expenses
|
|
|
25,000 |
|
Accounting fees and expenses
|
|
|
15,000 |
|
Printing fees
|
|
|
50,000 |
|
Miscellaneous
|
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31,582 |
|
|
Total
|
|
$ |
175,000 |
|
All of the above amounts, other than the SEC filing fee, are
estimates only.
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Item 15. |
Indemnification of Directors and Officers. |
Section 102(b)(7) of the Delaware General Corporation Law
(the DGCL) permits a corporation, in its certificate
of incorporation, to limit or eliminate, subject to certain
statutory limitations, the liability of directors to the
corporation or its stockholders for monetary damages for
breaches of fiduciary duty, except for liability (a) for
any breach of the directors duty of loyalty to the
corporation or its stockholders, (b) for acts or omissions
not in good faith or which involve intentional misconduct or a
knowing violation of law, (c) under Section 174 of the
DGCL or (d) for any transaction from which the director
derived an improper personal benefit. Our restated certificate
of incorporation provides, among other things, that the personal
liability of our directors is so eliminated.
Under Section 145 of the DGCL, a corporation has the power
to indemnify directors and officers under certain prescribed
circumstances and subject to certain limitations against certain
costs and expenses, including attorneys fees actually and
reasonably incurred in connection with any action, suit or
proceeding, whether civil, criminal, administrative or
investigative, to which any of them is a party by reason of his
being a director or officer of the corporation if it is
determined that he acted in accordance with the applicable
standard of conduct set forth in such statutory provision.
Our By-laws provide that we will indemnify any person who was or
is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by
reason of the fact that the person is or was or has agreed to
become a director or officer of WESCO International or is or was
serving or has agreed to serve at the request of WESCO
International as a director or officer, of another corporation,
partnership, joint venture, trust or other enterprise, or by
reason of any action alleged to have been taken or omitted in
such capacity. We may indemnify any person who was or is a party
or is threatened to be made a party to such an action, suit or
proceeding by reason of the fact that the person is or was or
has agreed to become an employee or agent of WESCO International
or is or serving or has agreed to serve at the request of WESCO
International as an employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against
expenses (including attorneys fees), judgments, fines and
amounts paid in settlement actually and reasonably incurred by
him or on his behalf in connection with such action, suit, or
proceeding and any appeal therefrom, if the person acted in good
faith and in a manner the person reasonably believed to be in or
not opposed to the best interests of WESCO International and,
with respect to any criminal action or proceeding, had no
reasonable cause to believe the persons conduct was
unlawful; except that in the case of an action or suit by or in
the right of WESCO International to procure a judgment in its
favor (1) such indemnification will be limited to expenses
(including attorneys fees) actually and reasonably
incurred by such person in the defense or settlement of such
action or suit, and (2) no indemnification will be made in
respect of any claim, issue or matter as to which such person
will
II-1
have been adjudged to be liable to WESCO International unless
and only to the extent that the Delaware Court of Chancery or
the court in which such action or suit was brought determines
upon application that, despite the adjudication of liability but
in view of all the circumstances of the case, such person is
fairly and reasonably entitled to indemnity for such expenses
which the Delaware Court of Chancery or such other court deems
proper.
We are also authorized to purchase and maintain insurance on
behalf of any person who is or was or has agreed to become a
director or officer, or is or was serving at our request as a
director or officer of any other corporation, partnership, joint
venture, trust or other enterprise against any liability
asserted against such person and incurred by such person in any
such capacity or arising out of such persons status as
such, whether or not we would have the power to indemnify such
person against such liability under the DGCL, provided that such
insurance is available on acceptable terms, which determination
will be made by a vote of a majority of the entire Board of
Directors of WESCO International.
The following Exhibits are filed as part of this Registration
Statement:
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|
Exhibit |
|
|
Number |
|
Description |
|
|
|
|
4 |
.1 |
|
Indenture, dated as of June 5, 1998, among WESCO
International, Inc., WESCO Distribution, Inc. and Bank One, N.A.
(incorporated herein by reference to Exhibit 4.1 to the
Registration Statement of WESCO International, Inc. and WESCO
Distribution, Inc. on Form S-4 filed on September 28,
2001 (File No. 333-70404)). |
|
4 |
.2 |
|
Form of
91/8% Senior
Subordinated Note Due 2008, Series A (included in
Exhibit 4.1). |
|
4 |
.3 |
|
Form of
91/8% Senior
Subordinated Note Due 2008, Series B (included in
Exhibit 4.1). |
|
4 |
.4 |
|
Indenture, dated as of August 23, 2001, among WESCO
Distribution, Inc., WESCO International, Inc. and Bank One, N.A.
(incorporated herein by reference to Exhibit 4.6 to the
Registration Statement of WESCO International, Inc. and WESCO
Distribution, Inc. on Form S-4 filed on September 28,
2001 (File No. 333-70404)). |
|
4 |
.5 |
|
Form of
91/8% Senior
Subordinated Note Due 2008 (included in Exhibit 4.4). |
|
+5 |
.1 |
|
Opinion of Kirkpatrick & Lockhart Nicholson Graham LLP. |
|
+23 |
.1 |
|
Consent of PricewaterhouseCoopers LLP. |
|
23 |
.2 |
|
Consent of Kirkpatrick & Lockhart Nicholson Graham LLP
(included as part of Exhibit 5.1). |
|
24 |
.1 |
|
Powers of Attorney (included on signature page). |
(a) The undersigned registrant hereby undertakes:
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(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration
statement: |
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(i) To include any prospectus required by
Section 10(a)(3) of the Securities Act; |
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(ii) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in
volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered)
and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than 20% change in the |
II-2
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|
maximum aggregate offering price set forth in the
Calculation of Registration Fee table on the cover
of this registration statement; |
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(iii) To include any material information with respect to
the plan of distribution not previously disclosed in the
registration statement or any material change to such
information in the registration statement; |
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provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii)
do not apply if the information required to be included in a
post-effective amendment by those paragraphs is contained in
periodic reports filed with or furnished to the Commission by
the registrants pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act that are
incorporated by reference in the registration statement. |
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(2) That, for the purpose of determining any liability
under the Securities Act, each such post-effective amendment
shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona
fide offering thereof. |
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(3) To remove from registration by means of post-effective
amendment any of the securities being registered which remain
unsold at the termination of the offering. |
(b) The undersigned registrant hereby undertakes that, for
purposes of determining any liability under the Securities Act,
each filing of the undersigned registrants annual report
pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act (and, where applicable, each filing of
an employee benefit plans annual report pursuant to
section 15(d) of the Securities Exchange Act) that is
incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
(c) Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers
and controlling persons of the undersigned registrant pursuant
to the foregoing provisions, or otherwise, the undersigned
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the Securities Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the undersigned registrant of expenses incurred or paid by a
director, officer or controlling person of the undersigned
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
undersigned registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question
whether such indemnification is against public policy as
expressed in the Securities Act and will be governed by the
final adjudication of such issue.
II-3
SIGNATURES
Pursuant to the requirements of the Securities Act, the
undersigned registrant certifies that it has reasonable grounds
to believe that it meets all of the requirements for filing on
Form S-3 and has duly caused this registration statement to
be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Pittsburgh, Commonwealth of
Pennsylvania on March 14, 2005.
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WESCO INTERNATIONAL, INC.
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By: |
/s/ STEPHEN A. VAN OSS
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Title: |
Senior Vice President and Chief Financial and Administrative
Officer (Principal Financial and Accounting Officer) |
POWER OF ATTORNEY
Each of the undersigned directors and officers of WESCO
International, Inc., a Delaware corporation, do hereby
constitute and appoint Roy W. Haley and Stephen A. Van Oss, or
either of them, the undersigneds true and lawful attorneys
and agents, with full power of substitution and resubstitution
in each, to do any and all acts and things in our name and on
our behalf in our respective capacities as directors and
officers and to execute any and all instruments for us and in
our names in the capacities indicated below, which said
attorneys and agents, or either one of them, may deem necessary
or advisable to enable said corporation to comply with the
Securities Act , as amended, and any rules, regulations and
requirements of the Securities and Exchange Commission, in
connection with this registration statement, including
specifically, but without limitation, power and authority to
sign for us or any of us in our names in the capacities
indicated below, any and all amendments (including
post-effective amendments, whether pursuant to Rule 462(b)
or otherwise) hereto, and each of the undersigned does hereby
ratify and confirm all that said attorneys and agents, or either
one of them or any substitute, shall do or cause to be done by
virtue hereof. This Power of Attorney may be executed in any
number of counterparts.
Pursuant to the requirements of the Securities Act, as amended,
this Registration Statement has been signed by the following
persons in the capacities and on the dates indicated.
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Signature |
|
Title | |
|
Date | |
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| |
|
| |
|
/s/ ROY W. HALEY
Roy
W. Haley |
|
Chairman and Chief Executive Officer (Principal Executive Officer) |
|
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March 14, 2005 |
|
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/s/ STEPHEN A. VAN OSS
Stephen
A. Van Oss |
|
Senior Vice President and Chief Financial and Administrative Officer (Principal Financial and Accounting Officer) |
|
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March 14, 2005 |
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/s/ JAMES L. SINGLETON
James
L. Singleton |
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Director |
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|
March 14, 2005 |
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/s/ JAMES A. STERN
James
A. Stern |
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Director |
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|
March 14, 2005 |
|
II-4
|
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|
Signature |
|
Title | |
|
Date | |
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|
| |
|
| |
|
/s/ MICHAEL J. CHESHIRE
Michael
J. Cheshire |
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|
Director |
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|
March 14, 2005 |
|
|
/s/ ROBERT J.
TARR, JR.
Robert
J. Tarr, Jr. |
|
|
Director |
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|
March 14, 2005 |
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|
/s/ KENNETH L. WAY
Kenneth
L. Way |
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|
Director |
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|
March 14, 2005 |
|
|
/s/ GEORGE L.
MILES, JR.
George
L. Miles, Jr. |
|
|
Director |
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|
March 14, 2005 |
|
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/s/ SANDRA BEACH LIN
Sandra
Beach Lin |
|
|
Director |
|
|
|
March 14, 2005 |
|
|
/s/ WILLIAM J. VARESCHI
William
J. Vareschi |
|
|
Director |
|
|
|
March 14, 2005 |
|
II-5
EXHIBIT INDEX
|
|
|
|
|
|
|
Exhibit |
|
|
Number |
|
Description |
|
|
|
|
4 |
.1 |
|
|
|
Indenture, dated as of June 5, 1998, among WESCO
International, Inc., WESCO Distribution, Inc. and Bank One, N.A.
(incorporated herein by reference to Exhibit 4.1 to the
Registration Statement of WESCO International, Inc. and WESCO
Distribution, Inc. on Form S-4 filed on September 28,
2001 (File No. 333-70404)). |
|
4 |
.2 |
|
|
|
Form of
91/8% Senior
Subordinated Note Due 2008, Series A (included in
Exhibit 4.1). |
|
4 |
.3 |
|
|
|
Form of
91/8% Senior
Subordinated Note Due 2008, Series B (included in
Exhibit 4.1). |
|
4 |
.4 |
|
|
|
Indenture, dated as of August 23, 2001, among WESCO
Distribution, Inc., WESCO International, Inc. and Bank One, N.A.
(incorporated herein by reference to Exhibit 4.6 to the
Registration Statement of WESCO International, Inc. and WESCO
Distribution, Inc. on Form S-4 filed on September 28,
2001 (File No. 333-70404)). |
|
4 |
.5 |
|
|
|
Form of
91/8% Senior
Subordinated Note Due 2008 (included in Exhibit 4.4). |
|
+5 |
.1 |
|
|
|
Opinion of Kirkpatrick & Lockhart Nicholson Graham LLP. |
|
+23 |
.1 |
|
|
|
Consent of PricewaterhouseCoopers LLP. |
|
23 |
.2 |
|
|
|
Consent of Kirkpatrick & Lockhart Nicholson Graham LLP
(included as part of Exhibit 5.1). |
|
24 |
.1 |
|
|
|
Powers of Attorney (included on signature page). |