Published on 4/4/2019 in the Prospect News Investment Grade Daily.
New Issue: AutoZone prices $750 million of fixed-rate senior notes due 2024, 2029
By Cristal Cody
Tupelo, Miss., April 4 – AutoZone, Inc. sold $750 million of senior notes (Baa1/BBB/BBB) in two parts on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $300 million tranche of 3.125% five-year notes priced at 99.711 to yield 3.188%, and a spread of 87 basis points over Treasuries. The notes came on the tight side of guidance in the 90 bps over Treasuries spread area.
AutoZone sold $450 million of 3.75% 10-year notes at 99.727 to yield 3.783%, or a spread of 127 bps plus Treasuries. Price guidance was in the Treasuries plus 130 bps spread area.
Barclays, BofA Merrill Lynch and SunTrust Robinson Humphrey, Inc. were the bookrunners.
Proceeds from the deal will be used for general corporate purposes, including repaying, redeeming or repurchasing debt.
AutoZone is a Memphis-based auto parts and supplies retailer.
| Issuer: | AutoZone, Inc.
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| Amount: | $750 million
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| Description: | Senior notes
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| Bookrunners: | Barclays, BofA Merrill Lynch and SunTrust Robinson Humphrey Inc.
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| Senior co-managers: | J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | BB&T Capital Markets, 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., Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., TD Securities (USA) LLC and Citizens Capital Markets, Inc.
|
| Trade date: | April 4
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| Settlement date: | April 18
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| Ratings: | Moody’s: Baa1
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| S&P: BBB
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| Fitch: BBB
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| Distribution: | SEC registered
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| Marketing: | Fixed income investor calls
|
|
|
| Five-year notes
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| Amount: | $300 million
|
| Maturity: | April 18, 2024
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| Coupon: | 3.125%
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| Price: | 99.711
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| Yield: | 3.188%
|
| Spread: | Treasuries plus 87 bps
|
| Call features: | Make-whole call before March 18, 2024 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 3 bps; initial talk at Treasuries plus 105 bps area
|
|
|
| Ten-year notes
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| Amount: | $450 million
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| Maturity: | April 18, 2029
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| Coupon: | 3.75%
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| Price: | 99.727
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| Yield: | 3.783%
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| Spread: | Treasuries plus 127 bps
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| Call features: | Make-whole call before Jan. 18, 2029 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 3 bps; initial talk at Treasuries plus 145 bps area
|
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