Summary
AutoZone, Inc. (AZO) filed an 8-K report on April 24, 2012, to disclose the creation of a direct financial obligation. The company successfully completed the sale of $500 million aggregate principal amount of its 3.700% Senior Unsecured Notes due 2022. These notes bear a fixed interest rate and are scheduled to mature on April 15, 2022, with interest payments made semi-annually. This issuance was conducted under a previously filed shelf registration statement and a prospectus supplement.
Key Highlights
- 1AutoZone issued $500 million in 3.700% Senior Unsecured Notes due 2022.
- 2The Notes mature on April 15, 2022.
- 3Interest payments are fixed at 3.700% per annum, paid semi-annually on April 15 and October 15.
- 4The issuance was made under AutoZone's shelf registration statement (Form S-3) filed on April 17, 2012.
- 5The Notes rank equally with other senior unsecured liabilities and senior to any future subordinated debt.
- 6Customary covenants restrict the company's ability to incur secured debt, enter sale-leaseback transactions, or merge/consolidate.
- 7The Notes include provisions for redemption at the company's option and a change of control repurchase option for noteholders.