Published on 9/22/2020 in the Prospect News Investment Grade Daily.
New Issue: Advance Auto Parts sells $350 million 1.75% seven-year notes at 135 bps spread
By Cristal Cody
Tupelo, Miss., Sept. 22 – Advance Auto Parts, Inc. priced $350 million of 1.75% seven-year senior notes (Baa2/BBB-) on Tuesday at 99.672 to yield 1.8%, or a spread of Treasuries plus 135 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial guidance was in the Treasuries plus 185 bps area.
The issue was upsized from $300 million.
J.P. Morgan Securities LLC, BofA Securities Inc., Truist Securities Inc., Wells Fargo Securities LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used for a tender offer to purchase for cash all of the company’s 4.5% senior notes due Dec. 1, 2023.
Advance Auto is a Roanoke, Va.-based specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items.
| Issuer: | Advance Auto Parts, Inc.
|
| Amount: | $350 million
|
| Maturity: | Oct. 1, 2027
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| Description: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Truist Securities Inc., Wells Fargo Securities LLC and U.S. Bancorp Investments Inc.
|
| Senior co-managers: | PNC Capital Markets LLC, KeyBanc Capital Markets Inc. and TD Securities (USA) LLC
|
| Co-managers: | Fifth Third Securities, Inc., HSBC Securities (USA) Inc., Loop Capital Markets LLC, RBC Capital Markets, LLC and Regions Securities LLC
|
| Coupon: | 1.75%
|
| Price: | 99.672
|
| Yield: | 1.8%
|
| Spread: | Treasuries plus 135 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before Aug. 1, 2027; thereafter at par
|
| Trade date: | Sept. 22
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| Settlement date: | Sept. 29
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 185 bps area
|
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