Published on 8/16/2012 in the Prospect News Investment Grade Daily.
New Issue: O'Reilly Automotive sells $300 million 3.8% 10-year notes at Treasuries plus 200 bps
By Andrea Heisinger
New York, Aug. 16 - O'Reilly Automotive, Inc. priced $300 million of 3.8% 10-year senior notes on Thursday at a spread of Treasuries plus 200 basis points, a source away from the deal said.
The notes (Baa3/BBB/) were sold at 99.627 to yield 3.845%. There is a make-whole call at Treasuries plus 30 bps until June 1, 2022, with a par call after that date.
J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc. were the active bookrunners. Passive bookrunners were Bank of America Merrill Lynch and Wells Fargo Securities LLC.
Co-managers were BB&T Capital Markets, LLC, Fifth Third Securities, Inc., Capital One Southcoast, Inc., RBS Securities Inc. and UMB Financial Services, Inc.
Proceeds will be used for general corporate purposes.
The notes are guaranteed by O'Reilly Automotive Stores, Inc., Ozark Automotive Distributors, Inc., Greene County Realty Co., O'Reilly II Aviation Corp., Ozark Services, Inc., Ozark Purchasing, LLC, CSK Auto Corp., CSK Auto, Inc., CSKAUTO.COM, Inc. and OC Holding Co., LLC.
O'Reilly was last in the bond market with a $300 million deal of 4.63% 10-year notes priced at 262.5 bps over Treasuries on Sept. 14, 2011.
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 Corp., Ozark Services, Inc., Ozark Purchasing, LLC, CSK Auto Corp., CSK Auto, Inc., CSKAUTO.COM, Inc. and OC Holding Co., LLC
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Sept. 1, 2022
|
| Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. (active)
|
| Co-managers: | BB&T Capital Markets, LLC, Fifth Third Securities, Inc., Capital One Southcoast, Inc., RBS Securities Inc., UMB Financial Services, Inc.
|
| Coupon: | 3.8%
|
| Price: | 99.627
|
| Yield: | 2.845%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until June 1, 2022, par call after
|
| Trade date: | Aug. 16
|
| Settlement date: | Aug. 21
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
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