Published on 4/6/2017 in the Prospect News Investment Grade Daily.
New Issue: AutoZone prices $600 million 3.75% 10-year senior notes at 140 bps over Treasuries
By Cristal Cody
Tupelo, Miss., April 6 – AutoZone, Inc. (Baa1/BBB/BBB) sold $600 million of 3.75% 10-year senior notes on Thursday at a spread of 140 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.995 to yield 3.75%.
The notes were talked to price in the Treasuries plus 140 bps area, plus or minus 2.5 bps.
J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC were the bookrunners.
The notes will have a make-whole call and a par call. The issue also has a change-of-control put at 101%.
Proceeds will be used for general corporate purposes.
AutoZone is a Memphis-based auto parts and supplies retailer.
| Issuer: | AutoZone, Inc.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Maturity: | June 1, 2027
|
| Bookrunners: | J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC
|
| Senior co-managers: | Barclays, BofA Merrill Lynch and SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Fifth Third Securities, Inc., Keybanc Capital Markets Inc., Mizuho Securities USA Inc., MUFG, PNC Capital Markets LLC, Regions Securities LLC, BB&T Capital Markets, BNP Paribas Securities Corp., Capital One Securities, Inc. and TD Securities (USA) LLC
|
| Coupon: | 3.75%
|
| Price: | 99.995
|
| Yield: | 3.75%
|
| Spread: | Treasuries plus 140 bps
|
| Call feature: | Make-whole call at greater of par and Treasuries plus 25 bps until March 1, 2027, then at par
|
| Change-of-control put: | 101%
|
| Trade date: | April 6
|
| Settlement date: | April 18
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 2.5 bps
|
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