CSK Auto accepts tenders for 98% of 7% notes; 3 3/8% exchangeables accelerated

By Jennifer Chiou

New York, July 7 - CSK Auto Corp. said that its wholly owned subsidiary, CSK Auto, Inc., accepted tenders from holders of $221 million or 98% of its $225 million of 7% senior subordinated notes due 2014.

The securities were tendered before 5 p.m. ET on June 30, the early deadline.

The company also said that holders of its $125 million of 3 3/8% senior exchangeable notes due 2025 accelerated payment on the securities due to CSK Auto's failure to file its 10-K for the year ended Jan. 29 before July 2.

CSK said it will use $125 million under its term credit facility to fund the acceleration. The company will also pay accrued interest and said it will retire the notes. The previously announced tender offer is now moot.

The company added that its tender offer for its $100 million of 4 5/8% senior exchangeable notes due 2025 remains unchanged.

The Phoenix, Ariz., specialty retailer in the automotive aftermarket is also soliciting consents to amend the indenture for the notes, eliminating all material restrictive covenants and certain events of default and related provisions. It previously received the necessary consents to amend the 7% notes.

CSK Auto said it will pay par plus accrued interest to the purchase date.

The offer expires at 5 p.m. ET on July 18.

The offers are conditioned upon tenders from holders of a majority of the notes as well as financing from a new credit facility.

The Altman Group, Inc. is the information agent and depositary (201 806-7300).

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