Published on 4/18/2016 in the Prospect News Investment Grade Daily.
New Issue: AutoZone prices $650 million of three- and 10-year senior notes
By Cristal Cody
Eureka Springs, Ark., April 18 – AutoZone, Inc. sold $650 million of senior notes (Baa1/BBB/BBB) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
In the first tranche, the company priced $250 million of 1.625% three-year notes at 99.93 to yield 1.649%, or 75 basis points over Treasuries.
AutoZone also brought to market $400 million of 3.125% 10-year notes at 99.974 to yield 3.128%. The notes priced with a spread of 135 bps over Treasuries.
Barclays, BofA Merrill Lynch and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds from the deal will be used for general corporate purposes.
AutoZone is a Memphis-based auto parts and supplies retailer.
| Issuer: | AutoZone, Inc.
|
| Amount: | $650 million
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays, BofA Merrill Lynch, SunTrust Robinson Humphrey, Inc.
|
| Senior co-managers: | Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc.
|
| Co-managers: | Guggenheim Securities, LLC; Deutsche Bank Securities Inc.; Fifth Third Securities, Inc.; KeyBanc Capital Markets Inc.; MUFG; PNC Capital Markets LLC; Regions Securities LLC
|
| Put option: | 101%
|
| Trade date: | April 18
|
| Settlement date: | April 21
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $250 million
|
| Maturity: | April 21, 2019
|
| Coupon: | 1.625%
|
| Price: | 99.93
|
| Yield: | 1.649%
|
| Spread: | 75 bps over Treasuries
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | April 21, 2026
|
| Coupon: | 3.125%
|
| Price: | 99.974
|
| Yield: | 3.128%
|
| Spread: | 135 bps over Treasuries
|
| Make-whole call: | Treasuries plus 25 bps prior to Jan. 21, 2026, then callable at par
|
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