8-KMaterial AgreementsFinancial Events

AUTOZONE INC 8-K Report, Material Agreement (Dec 4, 2013)

Filed December 4, 2013For Securities:AZO

Summary

This 8-K filing from AutoZone, Inc. (AZO) on December 4, 2013, details significant amendments to its existing credit facility. The primary event is the entry into a Master Extension, New Commitment and Amendment Agreement, which enhances AutoZone's financial flexibility. Key changes include an increase in the total borrowing capacity from $1 billion to $1.25 billion, with an expanded option to further increase this to a maximum of $1.5 billion. Additionally, the maturity date of the revolving credit agreement has been extended by one year to September 13, 2017, with a provision for a potential further one-year extension. These amendments provide AutoZone with extended access to capital and improved financial resources for future operations and growth.

Key Highlights

  • 1AutoZone amended its Revolving Credit Agreement, extending its maturity date to September 13, 2017.
  • 2The total borrowing capacity under the Revolving Credit Agreement was increased from $1 billion to $1.25 billion.
  • 3AutoZone's option to increase its borrowing capacity was enhanced, potentially raising the maximum to $1.5 billion.
  • 4The filing incorporates information regarding these amendments into Item 2.03 concerning financial obligations.
  • 5Approximately $3.75 million in letters of credit were outstanding as of the amendment date.
  • 6The amendments provide AutoZone with greater financial flexibility and extended access to liquidity.

Frequently Asked Questions

This 8-K filing announces significant amendments to AutoZone's existing credit facility, primarily aimed at increasing its borrowing capacity and extending the maturity date, thereby enhancing its financial flexibility.

The total borrowing capacity has been increased from $1 billion to $1.25 billion. Furthermore, AutoZone's option to increase its borrowing capacity has been enhanced, allowing it to potentially raise the maximum amount to $1.5 billion.

The termination date of the Revolving Credit Agreement has been extended from September 13, 2016, to September 13, 2017. AutoZone also has the option to request a further one-year extension.

As of the date of the amendment, AutoZone had approximately $3.75 million in letters of credit outstanding under the Revolving Credit Agreement.