Published on 3/6/2023 in the Prospect News Investment Grade Daily.
New Issue: Advance Auto Parts sells $600 million notes in three-, five-year parts
By Wendy Van Sickle
Columbus, Ohio, March 6 – Advance Auto Parts, Inc. sold $600 million of notes (Baa2/BBB-) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $300 million of 5.9% three-year notes at 99.938 to yield 5.923%, or a spread over Treasuries of 130 basis points.
It also sold $300 million of 5.95% five-year notes at 99.919 to yield 5.969%, or a spread over Treasuries of 170 bps.
Bookrunners were J.P. Morgan Securities LLC, BofA Securities, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
Proceeds will be used for general corporate purposes, which may include the repayment or refinancing of borrowings and other debt.
The notes are guaranteed by Advance Stores Co., Inc.
The automotive retailer is based in Roanoke, Va.
| Issuer: | Advance Auto Parts, Inc.
|
| Guarantor: | Advance Stores Co., Inc.
|
| Amount: | $600 million
|
| Issue: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Fifth Third Securities, Inc., PNC Capital Markets LLC, Citigroup Global Markets Inc., Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | March 6
|
| Settlement date: | March 9
|
| Ratings: | Moody's: Baa2
|
| S&P: BBB-
|
|
|
| Three-year notes
|
| Amount: | $300 million
|
| Maturity: | March 9, 2026
|
| Coupon: | 5.9%
|
| Price: | 99.938
|
| Yield: | 5.923%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until maturity
|
| Change-of-control put: | 101%
|
| Cusip: | 00751YAH9
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | March 9, 2028
|
| Coupon: | 5.95%
|
| Price: | 99.919
|
| Yield: | 5.969%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 15, 2028, after at par
|
| Change-of-control put: | 101%
|
| Cusip: | 00751YAJ5
|
|
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