By Andrea Heisinger
New York, July 29 - AutoZone, Inc. priced an upsized $750 million of senior notes (Baa2/BBB/BBB) in two tranches Tuesday, according to an informed source and an FWP filing with the Securities and Exchange Commission.
A $500 million tranche of 6.5% notes due Jan. 15, 2014 priced at 99.991 to yield 6.503%, or Treasuries plus 312.5 basis points.
A $250 million tranche of 7.125% 10-year notes priced at 99.55 to yield 7.189%, or Treasuries plus 312.5 bps.
The tranche of 10-year notes was added due to reverse demand, a source said.
Both tranches have make-whole redemption options of Treasuries plus 50 bps.
There is a change-of-control put of 101%.
There was no price talk for the issue, a source close to the deal said, as it went right into a launch.
Bookrunners were Banc of America Securities LLC, Citigroup Global Markets Inc. and SunTrust Robinson Humphrey.
Proceeds will be used to repay, redeem or repurchase existing debt, including commercial paper, and to fund working capital, capital expenditures, new store openings, the repurchase of common stock, acquisitions and general corporate purposes.
The auto parts company is based in Memphis.
| Issuer: | AutoZone, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $750 million, increased to two tranches
|
| Bookrunners: | Banc of America Securities LLC, Citigroup Global Markets Inc., SunTrust Robinson Humphrey
|
| Change-of-control put: | 101%
|
| Trade date: | July 29
|
| Settlement date: | Aug. 4
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Notes due 2014
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2014
|
| Coupon: | 6.5%
|
| Price: | 99.991
|
| Yield: | 6.503%
|
| Spread: | Treasuries plus 312.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| Notes due 2018
|
| Amount: | $250 million
|
| Maturity: | Aug. 1, 2018
|
| Coupon: | 7.125%
|
| Price: | 99.55
|
| Yield: | 7.189%
|
| Spread: | Treasuries plus 312.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
