By Cristal Cody
Tupelo, Miss., March 26 – AutoZone, Inc. sold $1.25 billion of senior notes (Baa1/BBB/BBB) in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 3.625% five-year notes priced at 99.912 to yield 3.644%, and a spread of 320 basis points over Treasuries.
AutoZone sold $750 million of 4% 10-year notes at 99.933 to yield 4.008%, or a spread of 320 bps over Treasuries.
Both tranches were talked to price at the Treasuries plus 360 bps area.
BofA Securities, Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Mizuho Securities USA LLC and PNC Capital Markets LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including repaying, redeeming or repurchasing debt.
AutoZone is a Memphis-based auto parts and supplies retailer.
| Issuer: | AutoZone, Inc.
|
| Amount: | $1.25 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Mizuho Securities USA LLC and PNC Capital Markets LLC
|
| Trade date: | March 26
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | April 15, 2025
|
| Coupon: | 3.625%
|
| Price: | 99.912
|
| Yield: | 3.644%
|
| Spread: | Treasuries plus 320 bps
|
| Call features: | Make-whole call before March 15, 2025 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 360 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | April 15, 2030
|
| Coupon: | 4%
|
| Price: | 99.933
|
| Yield: | 4.008%
|
| Spread: | Treasuries plus 320 bps
|
| Call features: | Make-whole call before Jan. 15, 2030 at price equal to greater of par and Treasuries plus 50 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 360 bps area
|
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