O’Reilly Automotive to sell senior notes via three bookrunners

By Mary-Katherine Stinson

Lexington, Ky., Nov. 13 – O’Reilly Automotive Inc. intends to price an offering of senior notes (Baa1/BBB), according to a 424B5 filed with the Securities and Exchange Commission on Monday.

The notes will have a make-whole call and then a par call a number of months before the maturity date.

Any change of control will make the notes putable at 101.

BofA Securities, Inc., J.P. Morgan Securities LLC and Truist Securities, Inc. are joint bookrunners for the notes.

U.S. Bank Trust Co., NA is the trustee.

Skadden, Arps, Slate, Meagher & Flom LLP will serve as counsel for the company, and Shook, Hardy & Bacon LLP will serve as counsel for O’Reilly regarding Missouri law.

Sidley Austin LLP is counsel to the underwriters.

A portion of the proceeds will be used to repay a portion of the borrowings under the company’s commercial paper program. If any proceeds remain, they will be used for general corporate purposes, which may include working capital, stock repurchases and investments in other business opportunities, including acquisitions and related fees and expenses.

As of Nov. 8, the company had approximately $1.3 billion outstanding under its $1.8 billion commercial paper program, and outstanding commercial paper notes bore interest at a weighted-average interest rate of 5.62% and had maturities of up to 397 days from the date of issue.

The Springfield, Mo.-based company is an aftermarket auto parts retailer.

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