By Andrea Heisinger
New York, Jan. 11 - Advance Auto Parts, Inc. sold $300 million of 4.5% 10-year senior notes on Wednesday to yield Treasuries plus 260 basis points, an informed source said.
The deal was priced at the tight end of guidance, which was in the 265 bps area, plus or minus 5 bps, the source said.
The notes (Baa3/BBB-/) were priced at 99.968 to yield 4.504%. There is a make-whole call at Treasuries plus 40 bps before Oct. 15, 2021, and the notes can be called after at par.
The paper features a change-of-control put at 101%.
Bookrunners were Bank of America Merrill Lynch and J.P. Morgan Securities LLC. Passive bookrunners were SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC.
Co-managers were BB&T Capital Markets, U.S. Bancorp Investments Inc. and HSBC Securities (USA) LLC.
Proceeds will be used to repay debt, including amounts under a revolving credit facility, and for general corporate purposes.
The notes are guaranteed by domestic subsidiaries.
Advance Auto Parts was last in the market with a $300 million sale of 5.75% 10-year debt priced at 200 bps over Treasuries on April 26, 2010.
The automotive retailer is based in Roanoke, Va.
| Issuer: | Advance Auto Parts, Inc.
|
| Guarantors: | Domestic subsidiaries
|
| Issue: | Senior notes
|
| Amount: | $300 million
|
| Maturity: | Jan. 15, 2022
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC (active), SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC (passive)
|
| Co-managers: | BB&T Capital Markets, U.S. Bancorp Investments Inc., HSBC Securities (USA) LLC
|
| Coupon: | 4.5%
|
| Price: | 99.968
|
| Yield: | 4.504%
|
| Spread: | Treasuries plus 260 bps
|
| Call: | Make-whole at Treasuries plus 40 bps until Oct. 15, 2021, after at par
|
| Change-of-control put: | 101%
|
| Distribution: | Off shelf
|
| Trade date: | Jan. 11
|
| Settlement date: | Jan. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Price talk: | 265 bps area, plus or minus 5 bps
|
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