Published on 9/9/2020 in the Prospect News Investment Grade Daily.
New Issue: O'Reilly Automotive prices $500 million of 1.75% notes due 2031 at 110 bps spread
By Cristal Cody
Tupelo, Miss., Sept. 9 – O'Reilly Automotive, Inc. sold $500 million of 1.75% senior notes due March 15, 2031 (Baa1/BBB) on Wednesday at a spread of Treasuries plus 110 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price guidance was in the 140 bps over Treasuries area.
The notes priced at 99.544 to yield 1.798%.
Bookrunners were BofA Securities, Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Truist Securities, Inc. and U.S. Bancorp Investments Inc.
Proceeds will be used to redeem all of the company’s 4.875% senior notes due 2021 and for general corporate purposes.
O'Reilly Automotive is a Springfield, Mo.-based retailer of automotive aftermarket products.
Issuer: | O'Reilly Automotive, Inc.
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Amount: | $500 million
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Description: | Senior notes
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Maturity: | March 15, 2031
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Bookrunners: | BofA Securities, Inc., Wells Fargo Securities LLC, J.P. Morgan Securities LLC, Truist Securities, Inc. and U.S. Bancorp Investments Inc.
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Senior co-managers: | PNC Capital Markets LLC and TD Securities (USA) LLC
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Co-managers: | BNP Paribas Securities Corp., Capital One Securities, Inc., Citizens Capital Markets, Inc., Huntington Securities, Inc., Mizuho Securities USA LLC, MUFG and Regions Securities LLC
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Coupon: | 1.75%
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Price: | 99.544
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Yield: | 1.798%
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Spread: | Treasuries plus 110 bps
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Call features: | Make-whole call at greater of par or Treasuries plus 20 bps before Dec. 15, 2030; thereafter at par
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Trade date: | Sept. 9
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Settlement date: | Sept. 23
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Ratings: | Moody’s: Baa1
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| S&P: BBB
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Distribution: | SEC registered
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Price guidance: | Treasuries plus 140 bps area
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