Chicago, Oct. 23 – Genuine Parts Co. priced an $800 million offering of senior notes (Baa2/BBB) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
The first tranche for $425 million of five-year notes priced with a 6.5% coupon at 99.555 to yield 6.606%, or at Treasuries plus 180 basis points.
The tranche can be called with a Treasuries plus 30 bps make-whole premium before one month before the maturity date and then at par thereafter.
The second tranche for $375 million of 10-year notes priced with a 6.875% coupon at 99.537 to yield 6.94%, or at Treasuries plus 210 bps.
The notes may be called early with a Treasuries plus 35 bps make-whole premium until the par call option starts three months before the maturity date.
J.P. Morgan Securities LLC, PNC Capital Markets LLC and Wells Fargo Securities, LLC led the sale as joint bookrunners. Truist Securities, Inc. and NatWest Markets Securities Inc. joined as passive bookrunners.
Proceeds will be used to repay the company’s 3.24% series F senior promissory notes due Dec. 2, 2023, which have $250 million outstanding as of Sept. 30, and outstanding debt under its revolving credit facility maturing Sept. 30, 2026, with any remaining amounts for general corporate purposes. As of Sept. 30, based on the company’s debt rating, the applicable interest rate for the revolver was SOFR plus 112.5 bps. As of Oct. 19, approximately $150 million was outstanding under the facility, which was used for working capital purposes in the ordinary course of business.
Atlanta-based Genuine Parts distributes automotive replacement parts.
| Issuer: | Genuine Parts Co.
|
| Amount: | $800 million
|
| Issue: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities, LLC (active), Truist Securities, Inc. and NatWest Markets Securities Inc. (passive)
|
| Senior co-managers: | BofA Securities, Inc., TD Securities (USA) LLC, Santander US Capital Markets LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc.
|
| Co-managers: | Goldman Sachs & Co. LLC and ING Financial Markets LLC
|
| Trustee: | U.S. Bank Trust Co. NA
|
| Counsel to issuer: | King & Spalding LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | Oct. 23
|
| Settlement date: | Nov. 1
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 2028 notes
|
| Amount: | $425 million
|
| Maturity: | Nov. 1, 2028
|
| Coupon: | 6.5%
|
| Price: | 99.555
|
| Yield: | 6.606%
|
| Spread: | Treasuries plus 180 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; one-month par call
|
| Change of control: | At 101
|
| Cusip: | 372460AE5
|
|
|
| 2033 notes
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| Amount: | $375 million
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| Maturity: | Nov. 1, 2033
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| Coupon: | 6.875%
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| Price: | 99.537
|
| Yield: | 6.94%
|
| Spread: | Treasuries plus 210 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps; three-month par call
|
| Change of control: | At 101
|
| Cusip: | 372460AD7
|
|
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