ADI Global Distribution Inc. Common Stock When-Issued

Pro forma opening capital structure includes ~$1.0 billion of total debt and ~$150 million cash (net ~ $850 million), initial ratings BB-/Ba3, and an undrawn $500 million revolver. Opening net leverage is expected near 3.0x on Q1 LTM Standalone EBITDA with a target under 2.0x over time.

Capex is light ($54 million in 2025), but cash generation is working-capital sensitive, and TTM adjusted free cash flow into Q1 2026 was modestly negative after capex due to the 2025 indemnification termination and seasonal outflows. Score reflects adequate liquidity but moderate leverage and cash conversion variability.