Published on 8/4/2020 in the Prospect News Investment Grade Daily.
New Issue: AutoZone sells $600 million of 1.65% senior notes due 2031 at 117 bps spread
By Cristal Cody
Tupelo, Miss., Aug. 4 – AutoZone, Inc. sold $600 million of 1.65% senior notes due Jan. 15, 2031 (Baa1/BBB/BBB) on Tuesday at 99.696 to yield 1.682%, or a spread of 117 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Price talk was in the Treasuries plus 145 bps area.
J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used for the early redemption of the company’s $500 million 4% senior notes due November 2020. Any remaining proceeds will be used to repay, redeem or repurchase debt.
AutoZone is a Memphis-based auto parts and supplies retailer.
| Issuer: | AutoZone, Inc.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | Jan. 15, 2031
|
| Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BofA Securities, Inc., Mizuho Securities USA Inc., PNC Capital Markets LLC and Truist Securities, Inc.
|
| Co-managers: | BNP Paribas Securities Corp., Capital One Securities, Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., KeyBanc Capital Markets Inc., MUFG, Regions Securities LLC, Santander Investment Securities Inc., TD Securities (USA) LLC, SMBC Nikko Securities America, Inc. and Citizens Capital Markets, Inc.
|
| Coupon: | 1.65%
|
| Price: | 99.696
|
| Yield: | 1.682%
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps before Oct. 15, 2030; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 145 bps area
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
