Published on 3/1/2016 in the Prospect News Investment Grade Daily.
New Issue: O’Reilly Automotive prices $500 million 3.55% 10-year notes at Treasuries plus 175 bps
By Aleesia Forni
New York, March 1 – O'Reilly Automotive, Inc. was in Tuesday’s market with a $500 million offering of 3.55% 10-year senior notes (Baa1/BBB+) priced at Treasuries plus 175 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.832 to yield 3.57%.
The notes sold tighter than the Treasuries plus 185 bps area guidance.
J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., BofA Merrill Lynch and Wells Fargo Securities LLC are the bookrunners.
The Springfield, Mo.-based auto parts retailer plans to use the proceeds for general corporate purposes, which may include working capital, repurchases of common stock, repayment of debt and to invest in other business opportunities, including acquisitions, and to pay related fees and expenses.
| 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, O’Reilly Auto Enterprises, LLC
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | March 15, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc., BofA Merrill Lynch, Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, a division of BB&T Securities, LLC, Capital One Securities, Inc., RBS Securities, Inc., Regions Securities LLC, TD Securities (USA) LLC, Huntington Investment Co., UMB Financial Services, Inc.
|
| Coupon: | 3.55%
|
| Price: | 99.832
|
| Yield: | 3.57%
|
| Spread: | Treasuries plus 175 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Dec. 15, 2025, then callable at par
|
| Trade date: | March 1
|
| Settlement date: | March 8
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 185 bps area
|
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