Published on 3/1/2022 in the Prospect News Investment Grade Daily.
New Issue: Advance Auto Parts sells $350 million 3.5% 10-year notes at 183 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, March 1 – Advance Auto Parts, Inc. sold $350 million of 3.5% 10-year senior notes on Tuesday to yield Treasuries plus 183 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/BBB-) were priced at 99.605 to yield 3.547%.
There is a make-whole call at Treasuries plus 30 bps before Dec. 15, 2031, and the notes can be called after at par.
The paper features a change-of-control put at 101%.
Bookrunners were BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC.
Proceeds will be used to redeem all of the company’s $193.7 million of 4.5% senior notes due Dec. 1, 2023 with a make-whole premium.
The notes are guaranteed by Advance Stores Co., Inc.
The automotive retailer is based in Roanoke, Va.
| Issuer: | Advance Auto Parts, Inc.
|
| Guarantor: | Advance Stores Co., Inc.
|
| Amount: | $350 million
|
| Issue: | Senior notes
|
| Maturity: | March 15, 2032
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Truist Securities Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-managers: | Fifth Third Securities, Inc., PNC Capital Markets LLC, Citigroup Global Markets Inc., Citizens Capital Markets, Inc., KeyBanc Capital Markets Inc., SMBC Nikko Securities America, Inc. and TD Securities (USA) LLC
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Hogan Lovells US LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Coupon: | 3.5%
|
| Price: | 99.605
|
| Yield: | 3.547%
|
| Spread: | Treasuries plus 183 bps
|
| Call: | Make-whole at Treasuries plus 30 bps until Dec. 15, 2031, after at par
|
| Change-of-control put: | 101%
|
| Trade date: | March 1
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa2
|
| S&P: BBB-
|
| Cusip: | 00751YAG1
|
|
|
© 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.
