New Issue: O'Reilly sells $500 million 4.875% 10-year notes to yield Treasuries plus 162.5 bps

By Andrea Heisinger

New York, Jan. 11 - O'Reilly Automotive Inc. priced $500 million of 4.875% 10-year senior notes on Tuesday to yield Treasuries plus 162.5 basis points, according to an FWP filing with the Securities and Exchange Commission.

Whispered price talk was in the 178.5 bps area and then was revised to official talk in the 175 bps area. The deal came in tighter than that.

The notes (Baa3/BBB-/) were sold at 99.297 to yield 4.965%.

The notes are callable before Oct. 14, 2020 at the greater of par or a make-whole of Treasuries plus 25 bps. After that date, they're callable at par.

Barclays Capital Inc. and Bank of America Merrill Lynch ran the books.

Co-managers were J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BB&T Capital Markets LLC, Fifth Third Securities, Inc., RBS Securities Inc., Capital One Southcoast, Inc., UMB Financial Services, Inc., Bank of Oklahoma and FTN Financial Securities Corp.

Proceeds are being used to repay outstanding debt under an existing asset-based revolving credit facility, to pay fees and expenses related to the offering and for general corporate purposes.

The notes are guaranteed by subsidiaries O'Reilly Automotive Stores, Inc., Ozark Automotive Distributors, Inc., Greene County Realty Co., O'Reilly II Aviation, Inc., Ozark Services, Inc., Ozark Purchasing, LLC, CSK Auto Corp., CSK Auto, Inc., CSKAUTO.COM, Inc. and OC Holding Co., LLC.

The auto parts retailer is based in Springfield, Mo.

Issuer:	O'Reilly Automotive Inc.
Guarantors:	O'Reilly Automotive Stores, Inc., Ozark Automotive Distributors, Inc., Greene County Realty Co., O'Reilly II Aviation, Inc., Ozark Services, Inc., Ozark Purchasing, LLC, CSK Auto Corp., CSK Auto, Inc., CSKAUTO.COM, Inc., OC Holding Co., LLC
Issue:	Senior notes
Amount:	$500 million
Maturity:	Jan. 14, 2021
Bookrunners:	Barclays Capital Inc., Bank of America Merrill Lynch
Co-managers:	J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BB&T Capital Markets LLC, Fifth Third Securities, Inc., RBS Securities Inc., Capital One Southcoast, Inc., UMB Financial Services, Inc., Bank of Oklahoma, FTN Financial Securities Corp.
Coupon:	4.875%
Price:	99.297
Yield:	4.965%
Spread:	Treasuries plus 162.5 bps
Call:	At greater of par or make-whole of Treasuries plus 25 bps on or after Oct. 14, 2020, then at par until maturity
Trade date:	Jan. 11
Settlement date:	Jan. 14
Ratings:	Moody's: Baa3
	Standard & Poor's: BBB-
Price talk:	178.5 bps area (whispered), 175 area (official)

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