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IBM Extends $250 Million Credit Line to CHS Electronics


NORTH CASTLE, New York - 19 Jan 1999: . . . IBM announced today the signing of an agreement with CHS Electronics, Inc. (NYSE: HS), one of the largest international distributors of information technology products outside of the U.S. and the third largest in the world, in which IBM Global Financing will extend several major credit facilities totalling $250 million to fund CHS' strategic growth plans.

The credit line arrangement is designed to provide CHS Electronics with working capital for several CHS companies. IBM will finance working capital needs including inventory and accounts receivable for CHS' Central European Region; the German, Austrian and Swiss distribution companies of CHS; and to Karma BV and Karma Latin America. The Karma companies provide a central distribution point for information technology products to the European and Latin American markets. In addition to these credit facilities, IBM Global Financing provides other facilities globally to CHS subsidiaries for the acquisition of inventory.

"The opportunity for IBM Global Financing to fund the continued expansion and success of CHS Electronics is a great demonstration of IBM's capability to fund global companies," said Sam Khanna, general manager, Commercial Financing, IBM Global Financing.

"In the fast moving computer distribution industry, we pride ourselves on being responsive to our customers. It was a pleasure dealing with IBM Global Financing since they displayed the same sort of responsiveness in our transaction," said Craig Toll, CHS' Chief Financial Officer. "IBM Global Financing reacted quickly and professionally to the needs of our growing company, clearly demonstrating they understand our industry and how to finance it."

IBM Global Financing, whose offerings are delivered through IBM Credit Corporation in the U.S., offers businesses of all sizes leasing and financing for technology acquired from IBM or remarketers. IBM Global Financing also offers a broad array of asset management services and provides businesses with inventory and accounts receivable financing. With $35 billion in assets and $36 billion in originations in 1997, IBM Global Financing is the largest IT financing organization in the world. Visit the IBM Global Financing home page at http://www.financing.ibm.com

Miami-based CHS Electronics, ranked number 320 on the latest Fortune 500 list of the largest U.S.-based industrial corporations with sales of $7.5 billion and net income of $87.9 million for the last four quarters, is a leading international distributor of microcomputers, peripherals and software products to more than 120,000 resellers in 46 countries in Europe, Latin America, Asia, the Middle East and Africa. Unlike other computer wholesalers, CHS Electronics distributes a limited product line for a limited number of leading computer manufacturers and does so only outside the United States. The company believes that its "focused distribution" enables it to respond more quickly to customers, provide better service, and reduce inventory and working capital requirements. CHS believes it is the largest microcomputer distributor in Latin America and Europe.

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Contact(s) information

Terrence Marable
IBM
914-765-6647
tmarable@us.ibm.com

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