Summary
AutoZone, Inc. (AZO) filed a Form 8-K on July 2, 2009, reporting the completion of a significant debt offering. The company successfully sold $500 million in aggregate principal amount of 5.750% Notes due 2015. These notes are senior unsecured debt obligations, ranking equally with other senior unsecured liabilities. The offering was conducted under the company's existing shelf registration statement, indicating proactive capital management. This debt issuance provides AutoZone with substantial capital, the intended use of which is not explicitly detailed in this 8-K but is generally for corporate purposes. The terms include semi-annual interest payments, a maturity date in January 2015, and covenants common to such debt, including restrictions on secured debt, sale and leaseback transactions, and mergers. The notes also feature provisions for redemption at AutoZone's option and a change of control put option for noteholders, along with potential interest rate adjustments based on credit ratings.
Key Highlights
- 1AutoZone Inc. completed the sale of $500 million in 5.750% Notes due 2015.
- 2The Notes are senior unsecured debt obligations.
- 3Interest on the Notes is payable semi-annually at a fixed rate of 5.750% per year.
- 4The Notes mature on January 15, 2015.
- 5The offering was conducted under the company's existing shelf registration statement filed on Form S-3.
- 6The Notes are subject to customary covenants restricting debt, sale and leaseback transactions, and mergers.
- 7The Company has the option to redeem the Notes, and noteholders have a change of control repurchase option.