O'Reilly Automotive to get $750 million senior unsecured revolver

By Sara Rosenberg

New York, Jan. 11 - O'Reilly Automotive Inc. plans on getting a new $750 million senior unsecured revolving credit facility due in January 2016, according to an S-3 ASR filed with the Securities and Exchange Commission on Tuesday.

Bank of America is the lead bank on the deal.

Pricing on the revolver is expected to range from Libor plus 132.5 basis points to 250 bps, and the commitment fee is expected to range from 17.5 bps to 50 bps, based on debt ratings.

There is a $200 million accordion feature.

Financial covenants include a minimum consolidated fixed charge coverage ratio and a maximum consolidated leverage ratio.

Concurrently with closing on the new revolver, the company will complete a $500 million senior notes offering that will be used to repay all of the outstanding debt under its existing senior credit facility, which was approximately $356 million as of December 2010.

The note offering is conditioned on the new revolver.

"Moving to an unsecured capital structure will allow us increased flexibility to partner with our vendors to reduce our net working capital requirements over time. Improvement in our working capital, in combination with the ability to generate strong cash flow from operations, will provide us with additional liquidity and strategic flexibility going forward," said Tom McFall, executive vice president of finance and chief financial officer, in a news release.

O'Reilly Automotive is a Springfield, Mo.-based specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories.

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