By Andrea Heisinger
New York, June 29 - AutoZone, Inc. priced $500 million 5.75% notes due Jan. 15, 2015 Monday to yield Treasuries plus 325 basis points, an informed source said.
Price guidance was whispered in the low 300 bps area, the source said, although there was no official talk and the deal went straight into a launch.
The notes (Baa2/BBB/BBB) priced at 99.959 to yield 5.758% with a make-whole call at Treasuries plus 50 bps.
The notes feature a change-of-control put of 101%.
Bookrunners were J.P. Morgan Securities Inc. and Wachovia Capital Markets LLC. U.S. Bancorp Investments also ran the books passively.
Proceeds will be used for general corporate purposes, including to repay, redeem or repurchase existing debt including commercial paper; for working capital, capital expenditures and new stores; to repurchase common stock; and for acquisitions.
The auto parts and accessories chain is based in Memphis.
| Issuer: | AutoZone Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2015
|
| Bookrunners: | J.P. Morgan Securities Inc., Wachovia Capital Markets LLC (active) U.S. Bancorp Investments (passive)
|
| Coupon: | 5.75%
|
| Price: | 99.959
|
| Yield: | 5.758%
|
| Spread: | Treasuries plus 325 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 29
|
| Settlement date: | July 2
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | Low 300 bps area whispered
|
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