Summary
AutoZone, Inc. (AZO) filed an 8-K report on April 29, 2015, to disclose the issuance of new debt. The company successfully sold $250 million in 2.500% Notes due 2021 and $400 million in 3.250% Notes due 2025, totaling $650 million in aggregate principal amount. These notes are senior unsecured debt obligations, ranking equally with other senior unsecured liabilities, and bear fixed interest rates payable semi-annually. The proceeds from this offering were made under the company's existing shelf registration statement, indicating a strategic move to bolster its capital structure or fund ongoing operations and growth initiatives.
Key Highlights
- 1AutoZone issued $250 million of 2.500% Notes due 2021.
- 2AutoZone issued $400 million of 3.250% Notes due 2021.
- 3Total aggregate principal amount of new debt issued is $650 million.
- 4The notes are senior unsecured debt obligations.
- 5Interest on the notes is payable semi-annually.
- 6The issuance was made under the company's shelf registration statement filed on Form S-3.
- 7The debt issuance includes provisions for redemption at the company's option and repurchase upon a change of control.